Hub Group Inc (HUBG)

Interest coverage

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	222,640	293,603	365,792	439,012	474,588	487,758	430,141	329,451	238,213	151,174	125,192	109,461	105,443	114,501	118,621	138,882	154,864	179,636	265,892	254,741
Interest expense (ttm)	US$ in thousands	13,435	10,954	9,607	7,898	6,631	7,047	6,650	7,102	7,303	7,201	7,645	8,792	9,343	10,166	10,709	10,393	10,994	11,435	11,066	10,563
Interest coverage		16.57	26.80	38.08	55.59	71.57	69.21	64.68	46.39	32.62	20.99	16.38	12.45	11.29	11.26	11.08	13.36	14.09	15.71	24.03	24.12

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $222,640K ÷ $13,435K
= 16.57

Interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

Looking at the data for Hub Group, Inc., we see that the interest coverage ratio has been consistently strong over the past eight quarters, ranging from a low of 46.44 in Q1 2022 to a high of 71.58 in Q4 2022. This indicates that the company has had a robust ability to cover its interest expenses with its operating earnings during this period.

The most recent interest coverage ratio of 59.99 in Q4 2023 suggests that the company's earnings before interest and taxes are nearly 60 times higher than its interest expenses for that quarter. This level of coverage indicates a healthy financial position for Hub Group, Inc. and implies a low level of financial risk regarding its ability to meet interest payments.

Overall, based on the trend in interest coverage ratios, Hub Group, Inc. has demonstrated strong financial strength and stability in managing its interest obligations over the analyzed quarters.