JB Hunt Transport Services Inc (JBHT)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	10,024,000	10,433,300	12,341,500	10,298,500	8,186,700
Inventory	US$ in thousands	41,662	42,186	40,602	25,032	23,804
Inventory turnover		240.60	247.32	303.96	411.41	343.92

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $10,024,000K ÷ $41,662K
= 240.60

JB Hunt Transport Services Inc's inventory turnover has shown fluctuations over the past five years. The trend indicates an initial increase from 343.92 in 2020 to 411.41 in 2021, suggesting efficient management of inventory during this period. However, there was a decline in the inventory turnover to 303.96 in 2022, followed by a further decrease to 247.32 in 2023 and 240.60 in 2024.

This declining trend in inventory turnover may indicate potential issues such as excess inventory levels or challenges in effectively managing inventory. It is important for the company to monitor and optimize its inventory levels to ensure efficient utilization of resources and minimize carrying costs. Further investigation into the reasons behind the decreasing inventory turnover could help in implementing appropriate strategies to improve inventory management practices.