Hub Group Inc (HUBG)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 103,993 | 167,528 | 356,948 | 171,474 | 73,559 |
| Total stockholders’ equity | US$ in thousands | 1,645,000 | 1,634,640 | 1,599,600 | 1,340,310 | 1,157,920 |
| ROE | 6.32% | 10.25% | 22.31% | 12.79% | 6.35% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $103,993K ÷ $1,645,000K
= 6.32%
The return on equity (ROE) of Hub Group Inc has shown variability in recent years. The ROE increased significantly from 6.35% in December 2020 to 22.31% in December 2022, indicating improved efficiency in utilizing shareholder equity to generate profits. However, there was a decline in ROE to 10.25% by December 2023 and further to 6.32% by December 2024. These reductions may suggest challenges facing the company in maintaining profitability relative to its equity base. It is essential for the company to investigate the factors contributing to these fluctuations in ROE to sustain long-term financial performance and effectively utilize shareholders' investment.
Peer comparison
Dec 31, 2024