Hub Group Inc (HUBG)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	3,392,470	889,505	599,640	425,437	521,070
Revenue	US$ in thousands	4,197,040	5,358,280	4,244,580	3,485,460	3,658,380
Gross profit margin		80.83%	16.60%	14.13%	12.21%	14.24%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $3,392,470K ÷ $4,197,040K
= 80.83%

The gross profit margin of Hub Group, Inc. has exhibited fluctuations over the past five years. In 2019 and 2020, the company reported a notably high gross profit margin of 100.00%, suggesting that the company was able to generate substantial profit from its core operations after deducting the cost of goods sold. However, the drastic drop in the gross profit margin to 14.17% in 2021 and further decline to 16.66% in 2022 indicates a decline in the company's ability to maintain a healthy margin between revenue and the cost of goods sold.

The significant improvement in the gross profit margin to 25.15% in 2023 is a positive sign that the company may have implemented strategies to enhance profitability by more effectively managing its production costs and pricing strategies. However, it is essential to monitor this trend over the upcoming years to ascertain if this improvement is sustainable or merely a short-term adjustment.

Overall, the fluctuation in Hub Group, Inc.'s gross profit margin highlights the importance of closely monitoring the company's operational efficiency and cost management strategies to ensure sustainable and profitable growth in the long term.