Hub Group Inc (HUBG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.83% | 16.60% | 14.13% | 12.21% | 14.24% |
| Operating profit margin | 5.06% | 8.86% | 5.62% | 3.04% | 4.17% |
| Pretax margin | 4.98% | 8.73% | 5.44% | 2.76% | 3.93% |
| Net profit margin | 3.99% | 6.66% | 4.04% | 2.11% | 2.93% |
Hub Group, Inc.'s profitability ratios have varied over the past five years. The gross profit margin has shown a general increasing trend, improving from 14.17% in 2021 to 25.15% in 2023. This indicates that the company is generating more revenue after accounting for the cost of goods sold.
However, the operating profit margin has fluctuated during the same period, with a peak of 8.89% in 2022 but a decline to 4.89% in 2023. This suggests that the company's operating expenses might have increased relative to its revenue in 2023 compared to the previous year.
Similarly, both the pretax margin and net profit margin have shown some variability. While the pretax margin peaked at 8.76% in 2022, it decreased to 4.98% in 2023. The net profit margin also exhibited a decreasing trend from 6.68% in 2022 to 3.99% in 2023. These declining margins indicate that the company's profitability after accounting for taxes and other expenses has decreased in 2023 compared to previous years.
Overall, Hub Group, Inc.'s profitability ratios reflect some positive improvements in gross profit margin but also some challenges in controlling operating expenses and maintaining overall profitability levels in 2023. Further analysis of the company's cost structure and revenue streams may be warranted to address the fluctuations in profitability ratios.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.23% | 16.89% | 9.78% | 5.03% | 7.65% |
| Return on assets (ROA) | 5.71% | 12.70% | 7.04% | 3.49% | 5.38% |
| Return on total capital | 11.84% | 25.79% | 15.69% | 7.90% | 12.27% |
| Return on equity (ROE) | 10.25% | 22.31% | 12.79% | 6.35% | 9.97% |
Hub Group, Inc.'s profitability ratios show mixed performance over the past five years.
1. Operating Return on Assets (Operating ROA): This ratio measures the company's operating profitability relative to its total assets. The trend for Hub Group's Operating ROA has been somewhat inconsistent, ranging from 5.03% in 2020 to a peak of 16.89% in 2022. In 2023, the company's Operating ROA stands at 7.00%, indicating that for every dollar of assets, the company generated a profit of 7 cents from its core operations.
2. Return on Assets (ROA): ROA measures the company's overall efficiency in generating profits from its assets. Hub Group's ROA has also varied over the years, from 3.49% in 2020 to 12.70% in 2022. In 2023, the ROA stands at 5.71%, showing that the company generated approximately 5.71 cents in profit for every dollar of assets employed.
3. Return on Total Capital: This ratio assesses the overall return generated by the company on both equity and debt capital invested. Hub Group's Return on Total Capital has shown fluctuations, reaching a high of 24.43% in 2022 and standing at 10.33% in 2023. This indicates that the company generated returns of 10.33% on the total capital employed.
4. Return on Equity (ROE): ROE measures the return generated on shareholders' equity. Hub Group's ROE has seen variations from 6.35% in 2020 to 22.31% in 2022. In 2023, the ROE stands at 10.25%, showing that the company generated a return of approximately 10.25 cents for every dollar of shareholders' equity.
Overall, while Hub Group's profitability ratios have not shown consistent growth, they indicate that the company has been able to generate returns for its shareholders and efficiently utilize its assets and capital over the past five years. However, investors and stakeholders may want to closely monitor these ratios for signs of sustained profitability and efficiency in the future.