JB Hunt Transport Services Inc (JBHT)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.52 | 1.48 | 1.20 | 0.89 | 1.06 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 1.52 | 1.48 | 1.20 | 0.89 | 1.06 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.52 + — – —
= 1.52
JB Hunt Transport Services Inc's cash conversion cycle has fluctuated over the past five years. The company's cash conversion cycle decreased from 1.06 days in December 2020 to 0.89 days in December 2021, indicating an improvement in efficiency. However, the trend reversed in the subsequent years, with the cash conversion cycle increasing to 1.20 days in December 2022, 1.48 days in December 2023, and further to 1.52 days in December 2024.
The increasing trend in the cash conversion cycle suggests that JB Hunt Transport Services Inc took longer to convert its investments in inventory and accounts receivable into cash during these years. This could indicate potential issues with managing inventory levels, collecting receivables, or optimizing the company's payment practices.
Overall, the variations in JB Hunt Transport Services Inc's cash conversion cycle highlight the importance of monitoring working capital management practices to ensure optimal liquidity and operational efficiency.
Peer comparison
Dec 31, 2024