JB Hunt Transport Services Inc (JBHT)

Working capital 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
Total current assets US$ in thousands 2,084,910 2,211,780 2,313,370 1,842,120 1,481,300
Total current liabilities US$ in thousands 1,779,420 1,568,230 1,729,600 1,084,800 1,035,770
Working capital turnover 41.69 22.98 20.76 12.66 20.42

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $12,735,900K ÷ ($2,084,910K – $1,779,420K)
= 41.69

The working capital turnover of J.B. Hunt Transport Services, Inc. has shown an increasing trend over the past five years, indicating an improvement in efficiency in utilizing its working capital. The company's ability to generate revenue from its working capital has significantly improved, as evidenced by the consistent growth in the working capital turnover ratio.

In 2023, the working capital turnover ratio reached 42.00, significantly surpassing the ratios of the previous years. This indicates that J.B. Hunt has become more adept at efficiently using its working capital to support its operations and generate sales.

The remarkable increase in the working capital turnover ratio from 2020 to 2023 signifies a notable enhancement in the company's operational efficiency and effectiveness in managing its current assets and liabilities. This improved ratio suggests that the company has optimized its working capital management, leading to a more streamlined and productive operation.

Overall, the upward trend in J.B. Hunt Transport Services, Inc.'s working capital turnover ratio reflects positively on the company's financial health and operational performance, demonstrating its ability to efficiently convert working capital into revenue over the past five years.