JB Hunt Transport Services Inc (JBHT)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.06 | 0.94 | 1.21 | 1.26 | 1.17 | 1.11 | 1.21 | 1.17 | 1.38 | 1.43 | 1.22 | 1.26 | 1.33 | 1.38 | 1.80 | 1.83 | 1.65 | 1.58 | 1.59 | 1.54 |
| Quick ratio | 0.03 | 0.06 | 0.03 | 0.04 | 0.03 | 0.04 | 0.17 | 0.03 | 0.03 | 0.06 | 0.07 | 0.08 | 0.21 | 0.32 | 0.46 | 0.47 | 0.28 | 0.29 | 0.28 | 0.05 |
| Cash ratio | 0.03 | 0.06 | 0.03 | 0.04 | 0.03 | 0.04 | 0.17 | 0.03 | 0.03 | 0.06 | 0.07 | 0.08 | 0.21 | 0.32 | 0.46 | 0.47 | 0.28 | 0.29 | 0.28 | 0.05 |
JB Hunt Transport Services Inc has shown fluctuations in its liquidity ratios over the past few years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has experienced some volatility. It increased from 1.54 in March 2020 to a peak of 1.83 in March 2021, before declining to 1.06 in December 2024. The current ratio indicates that the company has generally had an acceptable level of liquidity to meet its short-term obligations.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also fluctuated over the period. It ranged from a low of 0.03 in December 2022 to a high of 0.47 in March 2021. This ratio provides a more conservative view of the company's ability to meet its short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, followed a similar pattern to the quick ratio. It varied between 0.03 and 0.47 over the period, indicating the company's ability to cover its short-term liabilities with its readily available cash.
Overall, while JB Hunt Transport Services Inc has experienced fluctuations in its liquidity ratios, the company has generally maintained a sufficient level of liquidity to meet its short-term obligations. However, there may be a need to closely monitor the decreasing trend in the current ratio in recent periods to ensure continued liquidity sustainability.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of JB Hunt Transport Services Inc has shown fluctuating trends over the periods outlined. In March 2020, the company's cash conversion cycle was 0.98 days, indicating a relatively short cycle. Subsequently, in December 2020, the cycle increased to 1.06 days before returning to 0.00 days in the following periods up to March 2021.
From December 2021 onwards, the cash conversion cycle began to show an increasing trend, reaching 1.42 days by December 2023. This suggests that JB Hunt Transport Services Inc took longer to convert its investments and expenses back into cash during this period. The trend continued to December 2024, with the cycle extending further to 1.46 days.
The varying cash conversion cycle values can be attributed to changes in the company's working capital management efficiency, inventory turnover rates, and accounts receivable and payable practices. Overall, the increasing trend towards a longer cash conversion cycle may indicate potential challenges in managing liquidity and cash flow effectively.