JB Hunt Transport Services Inc (JBHT)

Payables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	5,454,510	5,527,340	5,625,260	5,734,150	5,588,260	5,278,240	4,937,610	4,537,910	4,304,313	4,078,962	3,887,336	3,706,727	3,634,615	3,590,372	3,589,165	3,630,083	3,569,513	3,500,856	3,418,940	3,295,666
Payables	US$ in thousands	737,364	808,803	767,428	749,774	798,776	838,859	886,617	854,879	772,736	749,071	674,856	641,887	587,510	603,523	513,517	497,649	602,601	654,959	640,324	594,704
Payables turnover		7.40	6.83	7.33	7.65	7.00	6.29	5.57	5.31	5.57	5.45	5.76	5.77	6.19	5.95	6.99	7.29	5.92	5.35	5.34	5.54

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,454,510K ÷ $737,364K
= 7.40

The payables turnover ratio for J.B. Hunt Transport Services, Inc. has shown fluctuations over the past eight quarters. The ratio indicates how efficiently the company is managing its accounts payable by calculating how many times during a period the company pays off its suppliers.

In Q4 2023, the payables turnover ratio was 1.02, slightly higher than the previous quarter at 0.99. This suggests that the company took approximately 1.02 quarters to pay off its accounts payable, reflecting a moderately efficient management of its trade credit obligations.

Looking back, in Q1 2023, the payables turnover ratio was at its peak for the period at 1.25, indicating that the company was more efficient in settling its payables in that quarter compared to others. Conversely, in Q2 2022 and Q1 2022, the payables turnover ratios were relatively lower at 0.84 and 0.71, respectively, suggesting that the company took longer to pay off its suppliers during those periods.

Overall, the payables turnover ratios exhibit variability, indicating fluctuating levels of efficiency in managing accounts payable over the quarters. It would be important for stakeholders to further analyze the reasons behind these fluctuations and to monitor if the trend is indicative of any underlying issues or if it reflects a normal course of business operations.