Hub Group Inc (HUBG)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-equity ratio		0.15	0.15	0.13	0.15	0.17

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $245,574K ÷ $1,634,640K
= 0.15

The debt-to-equity ratio of Hub Group, Inc. has shown a declining trend from 0.27 in 2019 to 0.22 in 2023. This indicates that the company has been gradually reducing its reliance on debt to finance its operations compared to its equity over the years. A lower debt-to-equity ratio suggests a stronger financial position and less financial risk for the company, as it indicates that the business is using less borrowed funds relative to its equity to support its activities. Overall, the decreasing trend in the debt-to-equity ratio is a positive sign for Hub Group, Inc., reflecting improved financial health and a more conservative approach to capital structure.