Hub Group Inc (HUBG)

Return on assets (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
Net income (ttm)	US$ in thousands	167,529	218,018	274,884	331,225	356,948	361,988	318,001	241,747	171,474	109,548	90,991	77,553	73,559	79,126	80,450	96,513	107,171	128,127	216,632	209,466
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
ROA		5.71%	7.47%	9.82%	11.47%	12.70%	13.15%	11.87%	9.49%	7.04%	4.78%	4.16%	3.60%	3.49%	3.83%	4.02%	4.61%	5.38%	6.71%	11.22%	10.85%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $167,529K ÷ $2,936,050K
= 5.71%

To analyze Hub Group, Inc.'s return on assets (ROA) based on the provided data, we observe a decreasing trend in ROA over the last eight quarters. The ROA declined from 12.70% in Q4 2022 to 5.71% in Q4 2023. This decreasing trend indicates a decreasing ability of the company to generate profits relative to its total assets.

It is noteworthy that Hub Group, Inc. experienced a significant drop in ROA between Q3 2022 and Q4 2023, declining from 13.15% to 5.71%. This decline suggests a potential inefficiency in asset utilization during this period.

Overall, the decreasing trend in ROA raises concerns about the company's operational efficiency and profitability relative to its asset base. Further analysis to identify the underlying causes of this decline and potential strategies for improvement may be warranted.