Hub Group Inc (HUBG)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	98,248	187,270	286,642	159,784	124,506
Short-term investments	US$ in thousands	—	—	—	—	23,353
Total current liabilities	US$ in thousands	579,481	658,210	691,770	687,069	529,105
Cash ratio		0.17	0.28	0.41	0.23	0.28

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($98,248K + $—K) ÷ $579,481K
= 0.17

Based on the provided data, Hub Group Inc's cash ratio has fluctuated over the past five years. The cash ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

In December 2020, the cash ratio was 0.28, suggesting that for every dollar of current liabilities, the company had $0.28 in cash and cash equivalents. This indicates a moderate level of liquidity.

By December 2021, the cash ratio decreased to 0.23, indicating a lower ability to cover short-term liabilities with cash. This could signal a potential liquidity constraint or an increase in short-term obligations.

However, in December 2022, the cash ratio improved significantly to 0.41, showing a healthier liquidity position for the company. This suggests that Hub Group Inc had increased its cash reserves compared to the previous year, which is a positive sign for its financial stability.

In December 2023, the cash ratio reverted back to 0.28, the same level as in 2020. This could imply that the company maintained a stable liquidity position relative to its short-term obligations.

Finally, in December 2024, the cash ratio dropped to 0.17, indicating a decline in liquidity compared to the previous year. A lower cash ratio may raise concerns about the company's ability to meet its short-term obligations using its available cash.

Overall, the trend in Hub Group Inc's cash ratio shows fluctuations in its liquidity position over the years, with periods of improvement and decline. It is important for the company to closely monitor its cash reserves and manage its short-term liabilities effectively to ensure financial stability.