JB Hunt Transport Services Inc (JBHT)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,735,900 | 14,788,200 | 12,116,200 | 9,585,030 | 9,097,520 |
| Property, plant and equipment | US$ in thousands | 5,773,910 | 4,979,820 | 4,067,660 | 3,688,890 | 3,620,870 |
| Fixed asset turnover | 2.21 | 2.97 | 2.98 | 2.60 | 2.51 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,735,900K ÷ $5,773,910K
= 2.21
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales from its investment in fixed assets. In the case of J.B. Hunt Transport Services, Inc., the fixed asset turnover has fluctuated over the past five years. The ratio decreased from 2.53 in 2019 to 2.22 in 2023, indicating a decline in the company's efficiency in generating revenue from its fixed assets.
However, it is noteworthy that J.B. Hunt's fixed asset turnover improved in 2022 and 2021, reaching 2.97 and 2.99, respectively. This suggests that the company became more efficient in utilizing its fixed assets to generate sales during those years. The ratio then dipped slightly to 2.61 in 2020 before experiencing a more significant decrease in 2023.
Overall, while the fluctuation in J.B. Hunt's fixed asset turnover indicates variability in the company's efficiency in converting fixed assets into revenue, it is essential to further analyze the reasons behind these fluctuations to understand the underlying factors impacting the company's performance in this aspect.
Peer comparison
Dec 31, 2023