The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Hub Group's current ratio for the quarter that ended in Dec. 2023 was 1.29.
Hub Group has a current ratio of 1.29. It generally indicates good short-term financial strength.
The historical rank and industry rank for Hub Group's Current Ratio or its related term are showing as below:
HUBG'
s Current Ratio Range Over the Past 10 Years
Min: 1.12 Med: 1.3 Max: 1.74
Current: 1.29
During the past 13 years, Hub Group's highest Current Ratio was 1.74. The lowest was 1.12. And the median was 1.30.
HUBG's Current Ratio is ranked worse than 54.03% of 981
companies
in the Transportation industry
Industry Median: 1.4
vs HUBG: 1.29
Hub Group Current Ratio Historical Data
The historical data trend for Hub Group's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Hub Group's Current Ratio
For the Integrated Freight & Logistics subindustry, Hub Group's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hub Group's Current Ratio Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Hub Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Hub Group's Current Ratio falls into.
Hub Group Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Hub Group's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hub Group (NAS:HUBG) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Hub Group Current Ratio Related Terms
Thank you for viewing the detailed overview of Hub Group's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hub Group ranks among the largest providers of rail intermodal service. Roughly 60% of revenue comes from Hub's intermodal and transportation solutions division. ITS includes its flagship intermodal operations, which use the Class I rail carriers for the underlying line-haul movement of containers, as well as its dedicated truckload shipping unit. Asset light truckload and LTL brokerage makes up around 20%. The remaining 20% reflects Hub's logistics division, which provides outsourced transportation management, warehousing and fulfillment, and heavy-goods final mile delivery. Hub is somewhat acquisitive in that it often makes tuck-in acquisitions which expand its brokerage, logistics, and dedicated truckload offerings.
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