Hub Group Inc (HUBG)

Hub Group Inc's solvency ratios indicate a healthy financial position over the time period provided. The Debt-to-assets ratio remained relatively stable around 0.07 to 0.09 from March 31, 2020, to December 31, 2024, suggesting that the company is utilizing a low level of debt to finance its assets.

Similarly, the Debt-to-capital ratio also showed consistency, ranging from 0.10 to 0.13 over the same period. This ratio demonstrates the proportion of the company's capital that is funded by debt, with levels remaining moderate and indicating a balanced capital structure.

The Debt-to-equity ratio fluctuated between 0.10 and 0.26, with a general downward trend towards the later years. This trend suggests that the company has been gradually decreasing its reliance on debt financing in relation to equity, which can reduce financial risk and strengthen the company's solvency position.

The Financial leverage ratio decreased from 1.92 to 1.74, indicating a reduction in financial leverage over the years. A lower financial leverage ratio implies that the company is relying less on debt to finance its operations, which can enhance financial stability and flexibility.

Overall, Hub Group Inc's solvency ratios demonstrate prudent debt management and a solid financial base, indicating a sound ability to meet its financial obligations and maintain long-term sustainability.

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Coverage ratios

The interest coverage ratio indicates a company's ability to meet its interest obligations on outstanding debt with its operating income. Hub Group Inc's interest coverage ratio has shown significant fluctuations over the periods analyzed.

As of March 31, 2020, the interest coverage ratio stood at 13.36, suggesting that the company's operating income was sufficient to cover its interest expenses comfortably. However, there was a slight decline in the ratio in the subsequent quarters, with a value of 11.08 as of June 30, 2020.

From September 30, 2020, to December 31, 2021, Hub Group Inc's interest coverage ratio improved steadily, reaching a peak of 32.62 as of December 31, 2021. This substantial increase indicates a strong ability to cover interest payments with operating income during this period.

The company's interest coverage ratio continued to rise further in the following quarters, reaching its highest level of 71.57 as of December 31, 2022. This indicates a significant improvement in the company's financial health and its ability to comfortably meet its interest obligations.

However, from March 31, 2023, onwards, the interest coverage ratio started to decline consistently. This downward trend continued through December 31, 2024, with the ratio falling to 9.90. This decline may raise concerns about the company's ability to cover its interest expenses from its operating income in the later periods.

In summary, Hub Group Inc's interest coverage ratio has displayed notable fluctuations over the analyzed periods, including periods of strong performance and more recently declining coverage levels, signaling a possible need for closer monitoring of the company's financial health and debt servicing capabilities.