Hub Group Inc (HUBG)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	—	—	—	—	—	3.91	1.97	0.88	1.27	—	—	—	0.20	0.01	0.17	0.10	0.14	0.20	0.08	0.07
Days of sales outstanding (DSO)	days	51.34	53.22	53.44	53.23	49.49	51.63	46.60	49.27	46.57	53.85	57.77	60.82	58.95	57.42	51.98	52.20	53.57	58.71	47.88	46.71
Number of days of payables	days	122.74	135.47	145.32	143.87	158.90	70.72	37.90	31.06	25.86	30.53	33.61	35.68	38.83	34.38	33.16	33.46	30.72	33.69	28.38	28.71
Cash conversion cycle	days	-71.39	-82.25	-91.88	-90.63	-109.41	-15.19	10.67	19.09	21.98	23.31	24.17	25.15	20.32	23.05	18.99	18.84	23.00	25.22	19.58	18.07

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 51.34 – 122.74
= -71.39

The cash conversion cycle of Hub Group Inc has shown some fluctuations over the years. From March 31, 2020, to March 31, 2022, the company's cash conversion cycle ranged from 18.07 days to 25.15 days, indicating the time it takes for the company to convert its resources into cash.

From June 30, 2022, to March 31, 2024, the cash conversion cycle turned negative, reaching as low as -109.41 days by December 31, 2023. A negative cash conversion cycle may suggest that the company is paying suppliers slower than it collects from customers, which could indicate favorable cash flow management.

However, it is essential to note that a consistently negative cash conversion cycle may also indicate potential issues with managing working capital efficiently or could be caused by anomalies in the data. The company should monitor this metric closely to ensure it is reflective of sustainable and effective operations.