Hub Group Inc (HUBG)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	187,270	286,642	159,784	124,506	168,729
Short-term investments	US$ in thousands	—	—	—	23,353	—
Total current liabilities	US$ in thousands	658,210	691,770	687,069	529,105	507,364
Cash ratio		0.28	0.41	0.23	0.28	0.33

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($187,270K + $—K) ÷ $658,210K
= 0.28

The cash ratio for Hub Group, Inc. has fluctuated over the past five years, ranging from 0.28 to 0.49. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations, whereas a lower ratio raises concerns about liquidity.

In 2023, the cash ratio decreased to 0.37 from 0.49 in 2022, which may suggest a potential decrease in the company's liquidity position compared to the previous year. However, it is still higher than the ratios in 2021 and 2020, indicating an improvement in liquidity compared to those years.

Overall, the trend in the cash ratio for Hub Group, Inc. shows some variability, and it would be important to further analyze the company's cash management and liquidity position to understand the factors driving these changes and assess the company's ability to meet its short-term obligations.