Hub Group Inc (HUBG)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	167,528	356,948	171,474	73,559	107,171
Total stockholders’ equity	US$ in thousands	1,634,640	1,599,600	1,340,310	1,157,920	1,075,280
ROE		10.25%	22.31%	12.79%	6.35%	9.97%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $167,528K ÷ $1,634,640K
= 10.25%

To analyze Hub Group, Inc.'s return on equity (ROE) performance, we observe fluctuations over the past five years. ROE measures a company's efficiency in generating profits from its shareholders' equity.

In 2023, Hub Group's ROE decreased to 10.25% from 22.31% in 2022. This decline suggests a potential decrease in the company's ability to generate profits from its equity capital compared to the prior year.

The 2022 ROE of 22.31% was notably higher than the 2021 ROE of 12.79%, indicating a significant improvement in profitability efficiency during that period.

Similarly, the ROE in 2021 increased from 6.35% in 2020. This improvement suggests the company enhanced its profitability relative to the equity invested by shareholders in 2021.

Moreover, the ROE in 2020 was lower than in 2019, seeing a decrease from 9.97% to 6.35%. This decline could indicate a decrease in profitability efficiency or a change in the capital structure of the company that impacted the ROE negatively.

In conclusion, the trend in Hub Group's ROE over the past five years indicates some fluctuations, with notable increases and decreases. Further analysis would be beneficial to understand the factors driving these changes in profitability performance.