Hub Group Inc (HUBG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 78.92% | 80.83% | 16.60% | 14.13% | 12.21% |
| Operating profit margin | 3.55% | 5.06% | 8.86% | 5.62% | 3.04% |
| Pretax margin | 3.36% | 4.98% | 8.73% | 5.44% | 2.76% |
| Net profit margin | 2.63% | 3.99% | 6.66% | 4.04% | 2.11% |
Hub Group Inc's profitability ratios have shown varying trends over the past five years. The gross profit margin has demonstrated a steady increase from 12.21% in 2020 to 78.92% in 2024, indicating an improvement in the company's ability to generate revenue after accounting for the cost of goods sold.
In terms of operating profit margin, there was a notable increase from 3.04% in 2020 to 8.86% in 2022, but then a decline to 3.55% in 2024. This suggests that while the company was able to enhance its operational efficiency initially, it faced challenges in maintaining profitability in the later years.
The pretax margin also displayed a similar pattern, rising from 2.76% in 2020 to 8.73% in 2022 before falling to 3.36% in 2024. This indicates fluctuations in the company's ability to generate profits before accounting for taxes.
Lastly, the net profit margin showed an increase from 2.11% in 2020 to 6.66% in 2022, but then decreased to 2.63% in 2024. This ratio reflects the company's overall profitability after all expenses have been deducted.
Overall, while Hub Group Inc's profitability ratios have shown improvements in certain years, there have been fluctuations and declines in profitability margins in the later years, suggesting potential challenges in sustaining and maximizing profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.89% | 7.23% | 16.89% | 9.78% | 5.03% |
| Return on assets (ROA) | 3.63% | 5.71% | 12.70% | 7.04% | 3.49% |
| Return on total capital | 7.75% | 11.84% | 25.79% | 15.69% | 7.90% |
| Return on equity (ROE) | 6.32% | 10.25% | 22.31% | 12.79% | 6.35% |
Hub Group Inc's profitability ratios have shown varied performance over the recent years. The Operating Return on Assets (Operating ROA) improved from 5.03% in 2020 to 16.89% in 2022, before decreasing to 7.23% in 2023 and further to 4.89% in 2024.
Similarly, the Return on Assets (ROA) increased from 3.49% in 2020 to 12.70% in 2022, but dropped to 5.71% in 2023 and 3.63% in 2024.
The Return on Total Capital increased significantly from 7.90% in 2020 to 25.79% in 2022, then decreased to 11.84% in 2023 and 7.75% in 2024.
On the other hand, the Return on Equity (ROE) followed a similar pattern to ROA, with an increase from 6.35% in 2020 to 22.31% in 2022, then a decline to 10.25% in 2023 and 6.32% in 2024.
Overall, while there were improvements in profitability ratios until 2022, there were declines in subsequent years, suggesting a need for Hub Group Inc to focus on enhancing its operational efficiency and capital utilization to sustain and increase profitability levels.