Hub Group Inc (HUBG)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.33 | 1.30 | 1.32 | 1.28 | 1.29 | 1.65 | 1.67 | 1.68 | 1.53 | 1.38 | 1.56 | 1.42 | 1.30 | 1.37 | 1.35 | 1.30 | 1.27 | 1.39 | 1.34 | 1.49 |
| Quick ratio | 1.13 | 1.23 | 1.27 | 1.21 | 1.15 | 1.58 | 1.62 | 1.64 | 1.40 | 1.35 | 1.53 | 1.38 | 1.23 | 1.35 | 1.36 | 1.27 | 1.25 | 1.40 | 1.31 | 1.46 |
| Cash ratio | 0.17 | 0.30 | 0.35 | 0.30 | 0.28 | 0.61 | 0.58 | 0.54 | 0.41 | 0.29 | 0.42 | 0.29 | 0.23 | 0.39 | 0.45 | 0.39 | 0.28 | 0.38 | 0.41 | 0.55 |
Based on the provided data, Hub Group Inc's liquidity ratios over the past few years show a relatively stable trend with fluctuations in certain periods.
1. Current Ratio: The current ratio measures the company's ability to cover short-term obligations with its current assets. Hub Group Inc's current ratio has shown some fluctuations over the years, ranging from a low of 1.27 in December 2020 to a high of 1.68 in March 2023. The current ratio has generally remained above 1, indicating that the company has more than enough current assets to cover its short-term liabilities.
2. Quick Ratio: The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, also exhibits fluctuations for Hub Group Inc. The quick ratio has ranged from a low of 1.15 in December 2023 to a high of 1.64 in March 2023. Like the current ratio, the quick ratio has mostly stayed above 1, indicating the company's ability to meet short-term obligations without relying heavily on inventory.
3. Cash Ratio: The cash ratio reflects the company's ability to cover immediate liabilities with its cash and cash equivalents. Hub Group Inc's cash ratio has shown variations from a low of 0.17 in December 2024 to a high of 0.61 in September 2023. The company's cash ratio, while lower compared to the current and quick ratios, has generally remained at reasonable levels, indicating that Hub Group Inc has a sufficient level of cash to cover its immediate liabilities.
In conclusion, Hub Group Inc's liquidity ratios suggest that the company has maintained a satisfactory level of liquidity over the years, with the ability to meet its short-term obligations. However, fluctuations in the ratios over certain periods may require further analysis to understand the underlying reasons behind the changes and to ensure continued liquidity management.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Hub Group Inc has varied over the past few years, indicating fluctuations in the efficiency of its working capital management. Initially, the company had a positive cash conversion cycle, with values ranging from around 18 to 25 days, suggesting that it took the company about 18 to 25 days to convert its investments in inventory and other resources into cash inflows.
However, the trend changed dramatically in the latter half of the data period, with negative values recorded. This shift indicates that Hub Group Inc was able to convert its resources into cash at a faster rate than it was using those resources, resulting in negative cash conversion cycle days. This may imply improved liquidity and potentially more efficient operations during this period.
It is essential for the company to closely monitor its cash conversion cycle as it directly impacts its liquidity and working capital management. Consistently negative cash conversion cycle days may signal excessive liquidity or room for optimization of working capital efficiency, while positive cycle days could indicate potential liquidity constraints.