Hub Group Inc (HUBG)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	140,291	222,639	474,590	238,212	105,443
Long-term debt	US$ in thousands	164,361	245,574	240,724	177,479	176,797
Total stockholders’ equity	US$ in thousands	1,645,000	1,634,640	1,599,600	1,340,310	1,157,920
Return on total capital		7.75%	11.84%	25.79%	15.69%	7.90%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $140,291K ÷ ($164,361K + $1,645,000K)
= 7.75%

To analyze Hub Group Inc's return on total capital over the past five years, we can see a fluctuation in performance.

In 2020, the return on total capital was 7.90%. This indicates that for every dollar of total capital invested in the company, it generated a return of 7.90%.

The return on total capital saw a significant improvement in 2021, reaching 15.69%. This suggests a positive performance as the company was able to generate a higher return on the total capital invested compared to the previous year.

By the end of 2022, the return on total capital further increased to 25.79%. This significant rise indicates that the company made efficient use of its total capital to generate higher returns.

However, in 2023, the return on total capital dropped to 11.84%. This could indicate a potential decline in the company's efficiency in generating returns on its total capital.

The return on total capital decreased further to 7.75% by the end of 2024. This decline suggests that the company may have faced challenges in optimizing its capital to generate returns efficiently.

In conclusion, despite the fluctuations in return on total capital over the years, it is important for investors and stakeholders to closely monitor Hub Group Inc's performance to assess its ability to utilize capital effectively for generating returns.