Hub Group Inc (HUBG)

Quick ratio

		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	US$ in thousands	187,270	400,686	342,429	342,570	286,642	211,921	298,476	206,896	159,784	230,656	246,021	226,264	124,506	185,336	203,173	276,880	168,729	89,628	149,863	112,402
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	23,100	23,305	—	23,353	21,516	—	—	—	—	—	—
Receivables	US$ in thousands	568,855	636,384	616,775	701,089	681,557	784,770	797,718	769,732	684,434	617,492	537,481	510,741	511,940	552,675	449,147	456,315	446,776	438,497	424,421	447,846
Total current liabilities	US$ in thousands	658,210	656,288	593,737	637,707	691,770	740,664	718,645	707,579	687,069	644,256	592,230	580,941	529,105	542,728	496,101	502,808	507,364	444,925	477,119	486,888
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($187,270K + $—K + $568,855K) ÷ $658,210K
= 1.15

The quick ratio of Hub Group, Inc. has shown fluctuating results over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger liquidity position.

In Q1 2023, the quick ratio was 1.68, which was the highest level in the period under review. This suggests that Hub Group had $1.68 in quick assets for every dollar of current liabilities, indicating a healthy liquidity position.

The quick ratio then slightly decreased in Q2 2023 to 1.67 and remained relatively stable at 1.65 in Q3 2023. While these ratios remained above 1, indicating the company's ability to cover its short-term liabilities with liquid assets, there was a slight downward trend.

However, in Q4 2023, the quick ratio declined further to 1.29, the lowest level in the period. This decrease indicates a potential liquidity challenge as the company may have had fewer liquid assets to cover its current liabilities in the most recent quarter.

Overall, while Hub Group, Inc. has generally maintained a quick ratio above 1, signaling a solid liquidity position, the decreasing trend seen in Q4 2023 may warrant further investigation into the company's short-term liquidity management.