Hub Group Inc (HUBG)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.09 | 0.13 | 0.13 | 0.12 | 0.13 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $164,361K ÷ ($164,361K + $1,645,000K)
= 0.09
The debt-to-capital ratio for Hub Group Inc has been relatively stable over the past five years, ranging between 0.09 and 0.13. This ratio indicates the proportion of the company's capital that is financed through debt. A lower ratio suggests that the company relies less on debt financing and may be in a stronger financial position in terms of debt repayment obligations.
In the case of Hub Group Inc, the decreasing trend in the ratio from 0.13 in 2021 to 0.09 in 2024 indicates a potential reduction in debt relative to total capital employed. This may suggest that the company has been managing its debt levels effectively or has been shifting towards equity financing. However, it's important to consider other factors such as the company's overall financial health, industry norms, and future growth prospects when interpreting this ratio in isolation.
Peer comparison
Dec 31, 2024