Hub Group Inc (HUBG)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	98,248	187,270	286,642	159,784	124,506
Short-term investments	US$ in thousands	—	—	—	—	23,353
Receivables	US$ in thousands	554,816	568,855	681,557	684,434	511,940
Total current liabilities	US$ in thousands	579,481	658,210	691,770	687,069	529,105
Quick ratio		1.13	1.15	1.40	1.23	1.25

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($98,248K + $—K + $554,816K) ÷ $579,481K
= 1.13

The quick ratio of Hub Group Inc over the years indicates the company's ability to meet its short-term obligations with its most liquid assets. The quick ratio, also known as the acid-test ratio, is a measure of short-term liquidity that excludes inventory from current assets.

Hub Group Inc's quick ratio has shown some fluctuations over the years. As of December 31, 2020, the quick ratio stood at 1.25, indicating that the company had $1.25 in liquid assets available to cover each dollar of its current liabilities. This suggests a healthy liquidity position at that time.

In the following years, the quick ratio dipped slightly to 1.23 as of December 31, 2021, but then improved significantly to 1.40 by December 31, 2022. This increase may suggest that the company was managing its short-term obligations more effectively or had increased its liquid assets over this period.

However, by December 31, 2023, the quick ratio decreased to 1.15, indicating a potential decrease in short-term liquidity. This downward trend continued to December 31, 2024, where the quick ratio dropped further to 1.13. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its current liquid assets alone.

Overall, the fluctuations in Hub Group Inc's quick ratio over the years may indicate changes in the company's liquidity position and its ability to meet short-term financial obligations. It is essential for stakeholders to monitor these ratios closely to assess the company's financial health and risk management strategies.