JB Hunt Transport Services Inc (JBHT)

Cash conversion cycle

		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
Cash conversion cycle	days	-8.30	-15.30	-15.76	-12.91	-11.80	-14.93	-19.00	-19.77	-18.02	-20.72	-19.23	-18.42	-13.86	-17.38	-14.52	-9.59	-18.98	-25.62	-25.41	-23.91

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 2.82 + 38.22 – 49.34
= -8.30

The cash conversion cycle for J.B. Hunt Transport Services, Inc. fluctuated over the past eight quarters. On average, the company's cash conversion cycle was around -307.25 days. This indicates that, on average, J.B. Hunt Transport Services took approximately 307.25 days to convert its investments in inventory and other resources into cash inflows from sales.

The company's cash conversion cycle improved from Q1 2022 to Q4 2023, with the cycle becoming less negative over time. This improvement suggests that J.B. Hunt Transport Services was able to more efficiently manage its working capital, reducing the time it took to convert resources into cash.

It is essential to note that a negative cash conversion cycle indicates that the company is able to collect cash from customers before paying its suppliers. This can be a beneficial position as it allows the company to operate with cash inflows exceeding outflows, potentially leading to increased liquidity and improved financial health.