Hub Group Inc (HUBG)

Hub Group, Inc.'s solvency ratios have remained relatively stable over the past five years, indicating a consistent level of financial health and ability to meet its long-term obligations.

The debt-to-assets ratio has ranged between 0.11 and 0.14 during this period, with the latest data at 0.12 as of December 31, 2023. This ratio suggests that only a small portion of the company's assets is financed by debt, indicating lower financial risk.

The debt-to-capital ratio, which measures the proportion of debt in the company's capital structure, has also shown consistency, hovering between 0.17 and 0.21. As of December 31, 2023, this ratio stands at 0.18, indicating that Hub Group relies on debt for around 18% of its total capital.

The debt-to-equity ratio has exhibited a similar trend, staying within the range of 0.21 to 0.27. As of the latest data, December 31, 2023, this ratio is at 0.22. The decreasing trend in this ratio over the years shows that the company has been reducing its reliance on debt financing in relation to shareholders' equity.

Lastly, the financial leverage ratio, which shows the extent to which the company is using debt to finance its operations, has fluctuated between 1.76 and 1.85. As of December 31, 2023, this ratio is at 1.80. Despite some variation, the ratio has generally remained stable, indicating that Hub Group maintains a conservative level of leverage in its capital structure.

Overall, based on the solvency ratios, Hub Group, Inc. appears to have a prudent approach to managing its financial obligations and maintaining a healthy balance between debt and equity in its capital structure.

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Coverage ratios

The interest coverage ratio for Hub Group, Inc. has shown a generally improving trend over the past five years, indicating the company's increasing ability to cover its interest expenses with its earnings before interest and taxes (EBIT).

In 2023, the interest coverage ratio stands at a robust level of 59.99, slightly lower compared to the previous year's figure of 71.58, but still reflective of the company's strong ability to meet its interest obligations. This suggests that the company's earnings are significantly higher than its interest expenses, providing a comfortable cushion to service its debt.

Looking further back, the interest coverage ratio has shown a considerable increase from 11.33 in 2020 to 59.99 in 2023. This substantial improvement indicates a strengthening financial position and better operating performance.

Overall, the upward trend in the interest coverage ratio for Hub Group, Inc. over the past five years reflects a positive sign of financial health and indicates the company's capacity to effectively manage its debt obligations through its operational earnings.