JB Hunt Transport Services Inc (JBHT)

Days of inventory on hand (DOH)

		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
DOH	days	1.52	1.48	1.20	0.89	1.06

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 240.60
= 1.52

JB Hunt Transport Services Inc's days of inventory on hand (DOH) has exhibited some fluctuations over the years. As of December 31, 2020, the company held inventory for approximately 1.06 days, which decreased to 0.89 days by December 31, 2021. However, by December 31, 2022, the DOH increased to 1.20 days, and further rose to 1.48 days by December 31, 2023, before slightly increasing to 1.52 days by December 31, 2024.

The decreasing trend in the DOH from 2020 to 2021 suggests that the company effectively managed its inventory levels, possibly improving its inventory turnover. However, the subsequent increase in DOH could indicate a buildup of inventory or challenges in effectively managing and selling inventory. It is crucial for JB Hunt Transport Services Inc to assess the reasons behind these fluctuations and strive to maintain an optimal balance in inventory management to ensure efficient operations and cost control.