JB Hunt Transport Services Inc (JBHT)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.46 | — | — | — | 1.42 | — | — | — | 1.20 | — | — | — | 0.89 | — | — | — | 1.06 | — | — | 0.98 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 1.46 | 0.00 | 0.00 | 0.00 | 1.42 | 0.00 | 0.00 | 0.00 | 1.20 | 0.00 | 0.00 | 0.00 | 0.89 | 0.00 | 0.00 | 0.00 | 1.06 | 0.00 | 0.00 | 0.98 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.46 + — – —
= 1.46
JB Hunt Transport Services Inc has shown a fluctuating trend in its cash conversion cycle over the periods provided. The cash conversion cycle represents the number of days it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
From March 2020 to December 2024, the company's cash conversion cycle has ranged from 0.00 days to 1.46 days. A shorter cash conversion cycle indicates that the company is able to efficiently collect cash from its operations, while a longer cycle may suggest inefficiencies in managing inventory, accounts receivable, or accounts payable.
Specifically, periods where the cash conversion cycle was higher, such as December 31, 2020, December 31, 2022, and December 31, 2023, may warrant further investigation into the company's working capital management practices. On the other hand, periods like June 30, 2020, September 30, 2020, and subsequent periods until June 30, 2024, with a cash conversion cycle of 0.00 days, indicate high efficiency in converting resources into cash.
Overall, a consistently low cash conversion cycle is positive, as it signifies the company's ability to efficiently manage its working capital and generate cash flows from its operational activities. However, it is important to monitor fluctuations and investigate any significant changes to ensure the company remains effective in its cash management practices.
Peer comparison
Dec 31, 2024