JB Hunt Transport Services Inc (JBHT)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 7.40 | 7.00 | 5.57 | 6.19 | 5.92 | |
| Number of days of payables | days | 49.34 | 52.17 | 65.53 | 59.00 | 61.62 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.40
= 49.34
The analysis of J.B. Hunt Transport Services, Inc.'s number of days of payables over the past five years reveals a significant fluctuation in the company's ability to manage its payables effectively.
At the end of December 2023, the number of days of payables stood at 358.14 days, indicating that on average, the company takes approximately 358 days to pay off its accounts payable. This represents an increase from the previous year, where the number of days of payables was 312.92 days.
The substantial increase in the number of days of payables from 2022 to 2023 may suggest a slowdown in the company's payment cycle, potentially signaling liquidity constraints or challenges in managing working capital efficiently.
Looking back at December 2021, the number of days of payables was 531.52 days, significantly higher compared to the more recent figures. The sharp decrease in 2022 reflects an improvement in managing payables, although the current figure for 2023 indicates a reversal of that trend.
It's worth noting that data for 2020 and 2019 are not available, making it challenging to assess the company's historical performance accurately. Nevertheless, the recent increase in the number of days of payables raises concerns about J.B. Hunt Transport Services, Inc.'s payment practices and may warrant further investigation into its cash flow management strategies.
Peer comparison
Dec 31, 2023