Hub Group Inc (HUBG)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	222,639	474,590	238,212	105,443	154,864
Long-term debt	US$ in thousands	245,574	240,724	177,479	176,797	186,934
Total stockholders’ equity	US$ in thousands	1,634,640	1,599,600	1,340,310	1,157,920	1,075,280
Return on total capital		11.84%	25.79%	15.69%	7.90%	12.27%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $222,639K ÷ ($245,574K + $1,634,640K)
= 11.84%

Hub Group, Inc.'s return on total capital has exhibited variability over the years. In 2023, the return on total capital decreased to 10.33% from its peak in 2022 at 24.43%. Despite the decrease, the return on total capital in 2023 remains above the levels seen in 2020 and 2019. This indicates that the company is generating a reasonable return on the total capital invested in the business, although there was a dip in performance compared to the prior year.