JB Hunt Transport Services Inc (JBHT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 240.60 | 247.32 | 303.96 | 411.41 | 343.92 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 130.05 | 42.00 | 24.72 | 21.07 | 13.11 |
JB Hunt Transport Services Inc's inventory turnover ratio has shown an increasing trend over the past five years, indicating that the company is managing its inventory more efficiently. The ratio increased from 343.92 in 2020 to 240.60 in 2024, reflecting a positive development in how quickly the company is selling its inventory.
On the other hand, the receivables turnover ratio is not available for the given years, which may suggest that the company does not report this metric or has not disclosed the necessary data.
Similarly, the payables turnover ratio is not provided, which could indicate that information related to how quickly the company pays off its suppliers is not available in the dataset.
The working capital turnover ratio has experienced significant growth from 13.11 in 2020 to 130.05 in 2024. This indicates that JB Hunt Transport Services Inc is generating a higher level of sales relative to its working capital, demonstrating improved efficiency in utilizing its working capital to drive revenue growth over the years.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.52 | 1.48 | 1.20 | 0.89 | 1.06 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
JB Hunt Transport Services Inc's activity ratios reflect its efficiency in managing inventory, accounts receivable, and accounts payable:
1. Days of Inventory on Hand (DOH): The company's DOH has fluctuated over the years, ranging from a low of 0.89 days in December 31, 2021 to a high of 1.52 days in December 31, 2024. A lower DOH indicates that JB Hunt Transport Services Inc is managing its inventory efficiently, as it takes fewer days to sell its inventory.
2. Days of Sales Outstanding (DSO): The data provided shows that DSO is not available for any of the years specified. This indicates that JB Hunt Transport Services Inc either does not extend credit to customers or does not have a significant accounts receivable balance outstanding.
3. Number of Days of Payables: Similar to DSO, the data indicates that the number of days of payables is not available for any of the years specified. This lack of information makes it difficult to assess how quickly the company pays its suppliers.
Overall, based on the available information, JB Hunt Transport Services Inc appears to be managing its inventory efficiently, although further analysis would be required to assess its accounts receivable and accounts payable management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 2.83 | 2.99 | 2.61 |
| Total asset turnover | 1.45 | 1.50 | 1.91 | 1.79 | 1.62 |
The analysis of JB Hunt Transport Services Inc's long-term activity ratios reveals important insights into the company's efficiency in managing its fixed assets and total assets over the years.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently the company generates revenue from its fixed assets.
- JB Hunt's fixed asset turnover has shown a gradual improvement from 2.61 in 2020 to 2.99 in 2021 and then slightly dropped to 2.83 in 2022.
- However, data for 2023 and 2024 are not available, so we are unable to assess the trend for those years.
- Overall, the company has been effectively utilizing its fixed assets to generate revenue, with a generally increasing trend up to 2022.
2. Total Asset Turnover:
- The total asset turnover ratio indicates how well the company generates revenue from its total assets.
- JB Hunt's total asset turnover has shown a similar pattern of improvement over the years.
- The ratio increased from 1.62 in 2020 to 1.79 in 2021 and further to 1.91 in 2022, reflecting efficient management of total assets.
- However, there was a slight decline in 2023 to 1.50 and a further drop to 1.45 in 2024, indicating a potential decrease in revenue generation relative to total assets.
- It is essential for the company to closely monitor this ratio to ensure optimal utilization of its assets for revenue generation.
In conclusion, JB Hunt Transport Services Inc has demonstrated efficiency in utilizing both fixed assets and total assets to generate revenue, as indicated by the positive trend in the fixed asset turnover up to 2022. However, the slight declines in both fixed asset turnover and total asset turnover in the most recent years suggest the need for continuous evaluation and strategic asset management to maintain or improve the company's performance in the long term.