Hub Group Inc (HUBG)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	140,291	212,231	474,721	238,457	105,826
Total assets	US$ in thousands	2,868,340	2,936,050	2,810,080	2,437,290	2,105,400
Operating ROA		4.89%	7.23%	16.89%	9.78%	5.03%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $140,291K ÷ $2,868,340K
= 4.89%

Operating return on assets (ROA) measures the profitability of a company's core operations relative to its total assets. Analyzing the data provided for Hub Group Inc, we observe fluctuations in the operating ROA over the years:

- In December 31, 2020, the operating ROA was 5.03%. This indicates that for every dollar of assets held by the company, it generated a return of 5.03% from its operations.
- By December 31, 2021, the operating ROA improved to 9.78%, reflecting a significant increase in profitability generated from its core business activities.
- The operating ROA saw a substantial surge to 16.89% by December 31, 2022, signifying very efficient utilization of assets to generate operating profits.
- However, there was a notable decline in the operating ROA to 7.23% by December 31, 2023, indicating a decrease in operating profitability relative to the level seen in the previous year.
- The trend continued as the operating ROA further decreased to 4.89% by December 31, 2024, suggesting a continued challenge in maintaining high profitability from its core operations.

In summary, although there were fluctuations in Hub Group Inc's operating ROA over the years, it is essential for the company to continue monitoring and managing its operating efficiency to ensure sustainable profitability and effective asset utilization.