Hub Group Inc (HUBG)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	212,231	474,721	238,457	105,826	152,420
Total assets	US$ in thousands	2,936,050	2,810,080	2,437,290	2,105,400	1,991,570
Operating ROA		7.23%	16.89%	9.78%	5.03%	7.65%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $212,231K ÷ $2,936,050K
= 7.23%

Operating ROA measures a company's ability to generate profits from its operations relative to its total assets. In the case of Hub Group, Inc., the operating ROA has fluctuated over the past five years, ranging from 5.03% in 2020 to 16.89% in 2022.

The latest operating ROA of 7.00% (as of December 31, 2023) reflects a decrease compared to the previous year, indicating that the company is generating less profit from its operations per dollar of assets. Despite the decline, the company's operating ROA remains relatively stable and is still higher than the levels seen in 2019 and 2020.

A high operating ROA, such as the one observed in 2022, signifies that Hub Group, Inc. efficiently utilizes its assets to generate profits. Conversely, a lower operating ROA, like the one in 2020, may suggest that the company is facing challenges in generating profits from its assets.

Overall, Hub Group, Inc.'s operating ROA performance has shown variability over the years, and further analysis of the company's operational efficiency and asset management may provide insights into the factors driving these fluctuations.