Hub Group Inc (HUBG)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	212,232	287,117	362,300	437,866	474,721	488,019	430,154	329,466	238,457	152,044	126,088	110,118	105,826	113,518	116,847	136,590	152,420	161,800	159,288	143,973
Total assets	US$ in thousands	2,936,050	2,918,130	2,800,040	2,887,980	2,810,080	2,752,660	2,679,240	2,547,130	2,437,290	2,291,480	2,186,220	2,154,770	2,105,400	2,064,970	1,999,180	2,094,610	1,991,570	1,910,680	1,930,120	1,931,310
Operating ROA		7.23%	9.84%	12.94%	15.16%	16.89%	17.73%	16.06%	12.93%	9.78%	6.64%	5.77%	5.11%	5.03%	5.50%	5.84%	6.52%	7.65%	8.47%	8.25%	7.45%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $212,232K ÷ $2,936,050K
= 7.23%

Hub Group, Inc.'s operating return on assets (operating ROA) has shown a declining trend over the past eight quarters, starting at 16.89% in Q4 2022 and reaching 7.00% in Q4 2023. This indicates a decrease in the company's ability to generate operating income relative to its total assets.

The decreasing trend in operating ROA may suggest inefficiencies or challenges in the company's operations, asset utilization, or profitability. It is essential for the company to investigate the root causes behind this decline and take necessary measures to improve its operational performance and asset utilization efficiency.

Overall, the fluctuations in operating ROA signal the need for Hub Group, Inc. to review its operational strategies, cost structures, and revenue generation processes to enhance its profitability and efficiency in utilizing its assets effectively.