Hub Group Inc (HUBG)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,936,050	2,810,080	2,437,290	2,105,400	1,991,570
Total stockholders’ equity	US$ in thousands	1,634,640	1,599,600	1,340,310	1,157,920	1,075,280
Financial leverage ratio		1.80	1.76	1.82	1.82	1.85

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,936,050K ÷ $1,634,640K
= 1.80

The financial leverage ratio of Hub Group, Inc. has been relatively stable over the past five years, ranging from 1.76 to 1.85. The ratio measures the extent to which the company relies on debt financing compared to equity. A higher financial leverage ratio indicates higher levels of debt relative to equity in the company's capital structure.

Hub Group's financial leverage ratio decreased slightly in 2022 but then increased again in 2023. This suggests that the company may have adjusted its capital structure by either increasing or decreasing debt relative to equity during these periods. However, overall the company has maintained a moderately high leverage ratio, indicating a significant reliance on debt to finance its operations and investments.

It is important for investors and stakeholders to closely monitor Hub Group's financial leverage ratio, as high levels of debt can increase financial risk and negatively impact the company's ability to meet its financial obligations, especially in times of economic downturns or rising interest rates. The company's management should carefully balance its use of debt financing to ensure optimal capital structure and financial stability.