Hub Group Inc (HUBG)

Hub Group Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity over the years. The Debt-to-assets ratio has remained stable, ranging from 0.06 in December 31, 2024 to 0.09 in December 31, 2022. The Debt-to-capital and Debt-to-equity ratios also show a similar trend, with values decreasing from 0.09 and 0.10 in December 31, 2024, respectively. Furthermore, the Financial leverage ratio has consistently stayed below 2, indicating a conservative capital structure. Overall, these solvency ratios suggest that Hub Group Inc has maintained a prudent level of debt compared to their resources, ensuring a strong capacity to meet its financial obligations.

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Coverage ratios

Hub Group Inc's interest coverage ratio has shown significant improvement over the past few years, reflecting the company's ability to meet its interest obligations comfortably. As of December 31, 2020, the interest coverage ratio stood at 11.29, indicating that the company generated operating income more than 11 times the amount needed to cover its interest expense for that year.

By the end of December 31, 2021, the interest coverage ratio had increased even further to 32.62, demonstrating a substantial improvement in the company's ability to service its debt obligations. This trend continued into December 31, 2022, with a remarkable interest coverage ratio of 63.23, signaling a strong financial position and the ability to easily cover interest payments.

However, there was a slight decline in the interest coverage ratio by December 31, 2023, to 16.57, which could suggest increased interest expenses or a temporary dip in operating income. Nevertheless, the ratio remained above 1, indicating that the company was still able to meet its interest obligations comfortably.

By December 31, 2024, the interest coverage ratio dropped further to 9.70, falling below the ideal threshold of 1, which raises some concerns about the company's ability to cover its interest expenses solely through operating income in that period.

Overall, Hub Group Inc has shown a generally positive trend in terms of interest coverage, with most years demonstrating a healthy ability to cover interest payments. However, it is essential for the company to closely monitor this ratio and ensure it remains at a sustainable level to avoid potential financial challenges in the future.