JB Hunt Transport Services Inc (JBHT)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 129.30 | — | — | — | 137.64 | — | — | — | 171.95 | — | — | — | 152.69 | — | — | 171.99 | 169.12 | — | — | — |
| Receivables turnover | 9.55 | 9.58 | 10.72 | 10.49 | 9.68 | 8.47 | 7.84 | 7.45 | 8.04 | 7.88 | 8.27 | 8.15 | 8.54 | 8.30 | 9.68 | 9.52 | 9.02 | 8.55 | 8.50 | 8.70 |
| 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 |
| Working capital turnover | 41.73 | 68.66 | 37.37 | 50.81 | 22.97 | 22.44 | 33.83 | 26.81 | 20.76 | 18.33 | 10.91 | 10.29 | 12.68 | 14.71 | 16.03 | 19.07 | 20.48 | 29.15 | 27.38 | 19.82 |
J.B. Hunt Transport Services, Inc.'s activity ratios provide insights into its efficiency in managing its assets and liabilities.
1. Inventory Turnover: The inventory turnover ratio indicates how effectively the company is managing its inventory. J.B. Hunt Transport Services, Inc. saw a decrease in inventory turnover from Q4 2022 to Q4 2023, which may suggest that it is taking longer to sell its inventory. However, the ratio remains relatively high, indicating efficient inventory management.
2. Receivables Turnover: This ratio measures how quickly the company is collecting its accounts receivable. J.B. Hunt Transport Services, Inc. experienced fluctuations in receivables turnover over the quarters, with Q2 2023 showing the highest turnover. The company seems to be improving its collection efficiency, as the turnover rates increased from Q4 2022 to Q2 2023.
3. Payables Turnover: The payables turnover ratio reflects how long the company takes to pay its suppliers. J.B. Hunt Transport Services, Inc. had a slight increase in payables turnover from Q4 2022 to Q1 2023, indicating that the company is taking longer to pay its obligations. However, the ratios are within acceptable levels.
4. Working Capital Turnover: This ratio evaluates how efficiently the company is using its working capital to generate sales revenue. J.B. Hunt Transport Services, Inc. shows significant fluctuations in working capital turnover across the quarters, with Q3 2023 having the highest turnover. The company seems to be effectively utilizing its working capital to generate revenues during the period.
Overall, J.B. Hunt Transport Services, Inc. demonstrates varying levels of efficiency in managing its assets and liabilities as shown by the activity ratios. Continued monitoring of these ratios will be essential to track the company's operational performance and financial health.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 2.82 | — | — | — | 2.65 | — | — | — | 2.12 | — | — | — | 2.39 | — | — | 2.12 | 2.16 | — | — | — |
| Days of sales outstanding (DSO) | days | 38.22 | 38.11 | 34.04 | 34.81 | 37.72 | 43.08 | 46.54 | 48.99 | 45.38 | 46.31 | 44.14 | 44.78 | 42.75 | 43.97 | 37.70 | 38.33 | 40.48 | 42.67 | 42.95 | 41.96 |
| Number of days of payables | days | 49.34 | 53.41 | 49.80 | 47.73 | 52.17 | 58.01 | 65.54 | 68.76 | 65.53 | 67.03 | 63.37 | 63.21 | 59.00 | 61.35 | 52.22 | 50.04 | 61.62 | 68.29 | 68.36 | 65.86 |
Based on the provided data for J.B. Hunt Transport Services, Inc., we can analyze the company's activity ratios as follows:
1. Days of Inventory on Hand (DOH):
- Q4 2023: 20.49 days
- Q4 2022: 15.91 days
The Days of Inventory on Hand measure how efficiently the company manages its inventory. J.B. Hunt's DOH has increased from 15.91 days in Q4 2022 to 20.49 days in Q4 2023. This indicates that the company is holding onto its inventory for a longer period in Q4 2023 compared to the same period in the previous year, which may tie up capital and affect liquidity.
2. Days of Sales Outstanding (DSO):
- Q4 2023: 48.08 days
- Q4 2022: 45.80 days
The Days of Sales Outstanding ratio reflects the average number of days it takes for the company to collect its accounts receivable. J.B. Hunt's DSO has increased from 45.80 days in Q4 2022 to 48.08 days in Q4 2023. This suggests that the collection process has slowed down, potentially impacting the company's cash flow and liquidity.
3. Number of Days of Payables:
- Q4 2023: 358.14 days
- Q4 2022: 312.92 days
The Number of Days of Payables ratio indicates the average number of days it takes for the company to pay its suppliers. J.B. Hunt's days of payables have increased from 312.92 days in Q4 2022 to 358.14 days in Q4 2023. A longer payment period may indicate that the company is taking longer to settle its obligations, which could potentially strain supplier relationships.
Overall, based on the activity ratios analysis, it appears that J.B. Hunt Transport Services, Inc. is facing challenges in managing its inventory efficiently, collecting receivables promptly, and paying its suppliers in a timely manner. These factors can impact the company's working capital and cash flow management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 2.21 | 2.29 | 2.52 | 2.79 | 2.97 | 3.11 | 3.13 | 3.07 | 2.98 | 2.95 | 2.88 | 2.72 | 2.60 | 2.53 | 2.54 | 2.57 | 2.52 | 2.46 | 2.40 | 2.46 |
| Total asset turnover | 1.49 | 1.57 | 1.67 | 1.86 | 1.90 | 1.97 | 1.92 | 1.85 | 1.78 | 1.75 | 1.69 | 1.61 | 1.62 | 1.61 | 1.66 | 1.73 | 1.67 | 1.67 | 1.63 | 1.64 |
The long-term activity ratios of J.B. Hunt Transport Services, Inc. indicate the efficiency with which the company utilizes its fixed and total assets to generate revenue over the specified quarters.
The fixed asset turnover ratio has been decreasing steadily from 3.14 in Q2 2022 to 2.22 in Q4 2023. This suggests that the company is generating less revenue for each dollar invested in fixed assets. The decreasing trend may indicate inefficient utilization of fixed assets or a need for capital expenditure to improve productivity.
On the other hand, the total asset turnover ratio has shown fluctuations but generally remained within a narrower range compared to the fixed asset turnover ratio. While there was a slight decrease from 1.97 in Q3 2022 to 1.50 in Q4 2023, the company is still generating $1.50 of revenue for every dollar of total assets invested. This indicates a relatively stable efficiency in utilizing total assets to generate revenue.
Overall, the company's long-term activity ratios suggest a potential inefficiency in the utilization of fixed assets, which may require management attention to improve productivity and profitability. It is important for the company to address the declining trend in fixed asset turnover to enhance its operational efficiency and long-term sustainability.