Hub Group Inc (HUBG)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.26 | 1.26 | 1.23 | 1.18 |
| Quick ratio | 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 | 1.21 | 1.19 | 1.20 | 1.15 |
| Cash ratio | 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 | 0.33 | 0.20 | 0.31 | 0.23 |
Hub Group, Inc.'s liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 1, indicating that the company has more than enough current assets to cover its current liabilities. In the most recent quarter, the current ratio decreased to 1.29 from a peak of 1.68 in Q1 2023.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. Similar to the current ratio, the quick ratio has consistently been above 1, suggesting that Hub Group, Inc. can meet its short-term obligations even without relying on inventory. The quick ratio mirrored the trend of the current ratio, remaining stable above 1 over the quarters.
The cash ratio, which specifically focuses on the company's ability to cover its current liabilities with its cash and cash equivalents, has shown more variability compared to the other two ratios. Hub Group, Inc.'s cash ratio has fluctuated between 0.32 and 0.68 over the past eight quarters. The decrease in the cash ratio in Q4 2023 to 0.37 from 0.68 in Q3 2023 may indicate a lower level of liquidity relative to the previous quarter.
Overall, Hub Group, Inc. has maintained a relatively sound liquidity position, as evidenced by the current, quick, and cash ratios consistently above key thresholds. However, the downward trend in the current and cash ratios in the most recent quarter should be monitored closely to ensure the company's ability to meet its short-term obligations does not deteriorate.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -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 | 17.91 | 24.71 | 17.53 | 16.79 |
The cash conversion cycle for Hub Group, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle stood at 10.20 days, reflecting an improvement from the previous quarter. This indicates that the company is able to efficiently convert its investments in inventory and accounts receivable into cash.
In Q3 2023, the cash conversion cycle increased to 13.78 days, suggesting a slight slowdown in the company's cash conversion efficiency compared to the previous quarter. The cycle continued to increase in Q2 2023 reaching 17.59 days, and further increased to 19.73 days in Q1 2023. These trends may indicate potential challenges in managing inventory and collecting accounts receivable efficiently during these periods.
Comparing these figures to the corresponding quarters in 2022, the cash conversion cycle seems to have been relatively stable at around 19 days during that year. This suggests that in the latest quarters, Hub Group, Inc. has made some improvements in managing its working capital and converting it into cash more effectively.
Overall, fluctuations in the cash conversion cycle indicate changes in the company's efficiency in managing its working capital. Hub Group, Inc. should continue to monitor and potentially optimize its inventory and accounts receivable processes to ensure a healthy cash conversion cycle in the future.