JB Hunt Transport Services Inc (JBHT)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 12,087,200 12,244,550 12,340,130 12,544,070 12,829,660 13,175,580 13,850,090 14,555,000 14,814,000 14,661,350 13,967,900 13,038,740 12,168,300 11,408,980 10,736,690 9,973,890 9,636,570 9,349,240 9,240,380 9,356,460
Total current assets US$ in thousands 1,770,980 1,926,400 1,913,710 1,949,560 2,084,910 1,970,170 2,137,580 1,988,930 2,167,540 2,152,420 2,281,920 2,255,150 2,303,840 2,265,150 2,209,300 2,132,000 1,860,970 1,728,600 1,544,700 1,397,970
Total current liabilities US$ in thousands 1,678,040 2,041,440 1,581,460 1,543,980 1,779,420 1,779,080 1,768,520 1,703,580 1,568,230 1,500,720 1,870,060 1,784,730 1,726,360 1,644,630 1,228,360 1,166,400 1,126,190 1,095,420 970,682 909,376
Working capital turnover 130.05 — 37.14 30.93 42.00 68.95 37.53 51.01 24.72 22.50 33.91 27.72 21.07 18.39 10.95 10.33 13.11 14.77 16.10 19.15

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $12,087,200K ÷ ($1,770,980K – $1,678,040K)
= 130.05

JB Hunt Transport Services Inc's working capital turnover has experienced fluctuation over the past few years. The ratio was relatively high in March 2020 at 19.15, indicating efficient utilization of working capital to generate revenue. However, the ratio decreased to 10.33 by March 2021, suggesting a decline in the company's ability to generate sales relative to its working capital.

Subsequently, there was a gradual increase in the working capital turnover ratio reaching 33.91 by June 2022. This improvement indicates the company's effectiveness in using its working capital to generate revenue. However, there was a notable drop in the ratio to 22.50 by September 2022, possibly signaling challenges in managing working capital efficiently during that period.

The ratio significantly spiked to 130.05 by December 2024, which is a substantial increase compared to previous periods. Such a high working capital turnover suggests that the company was able to generate a significant amount of revenue relative to its working capital investment.

Overall, the working capital turnover ratio for JB Hunt Transport Services Inc has shown variability, with some periods reflecting efficient utilization of working capital to drive revenue, while in other periods, there were challenges in maintaining the same level of efficiency. Investors and analysts may want to further investigate the reasons behind these fluctuations to assess the company's financial management and operational performance.