JB Hunt Transport Services Inc (JBHT)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.17 | 1.11 | 1.21 | 1.17 | 1.41 | 1.43 | 1.22 | 1.27 | 1.34 | 1.38 | 1.80 | 1.83 | 1.70 | 1.58 | 1.59 | 1.54 | 1.43 | 1.29 | 1.30 | 1.44 |
| Quick ratio | 0.78 | 0.81 | 0.89 | 0.84 | 1.01 | 1.21 | 1.02 | 1.06 | 1.08 | 1.20 | 1.52 | 1.52 | 1.33 | 1.31 | 1.26 | 1.13 | 1.01 | 1.05 | 0.99 | 1.06 |
| Cash ratio | 0.03 | 0.04 | 0.17 | 0.03 | 0.03 | 0.06 | 0.07 | 0.08 | 0.21 | 0.32 | 0.46 | 0.47 | 0.29 | 0.29 | 0.28 | 0.05 | 0.03 | 0.07 | 0.01 | 0.05 |
The current ratio measures J.B. Hunt Transport Services, Inc.'s ability to cover its short-term obligations with its current assets. The company's current ratio has fluctuated over the past year, ranging from a low of 1.11 in Q3 2023 to a high of 1.43 in Q3 2022. A current ratio above 1 indicates that the company has more current assets than current liabilities. Although the current ratio has decreased in recent quarters, it remains above 1, indicating that the company should be able to meet its short-term obligations.
The quick ratio, which is a more stringent measure of liquidity than the current ratio, excludes inventory from current assets. J.B. Hunt's quick ratio has also shown fluctuations over the past year, ranging from 1.11 in Q3 2023 to 1.43 in Q3 2022. The company's quick ratio remains above 1 in all periods, indicating that it has an adequate level of liquid assets to cover its short-term liabilities without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio, measures the company's ability to cover its current liabilities with its cash and cash equivalents. J.B. Hunt's cash ratio has varied over the past year, with values ranging from 0.20 in Q4 2022 to 0.48 in Q2 2023. A cash ratio below 1 signifies that the company does not have enough cash to cover its short-term liabilities. While the cash ratio has fluctuated, it generally remains below 1, indicating that J.B. Hunt may face challenges in meeting its short-term obligations solely with its cash reserves.
In summary, J.B. Hunt Transport Services, Inc. has maintained adequate liquidity levels as indicated by its current ratio and quick ratio being consistently above 1. However, the company's cash ratio suggests that it may have limitations in covering short-term obligations solely through its cash reserves. It is essential for J.B. Hunt to continue effectively managing its liquidity to support its operational and financial needs.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of J.B. Hunt Transport Services, Inc. has shown fluctuations over the past eight quarters. The company has managed to improve its cash conversion cycle significantly in recent quarters, with a trend of decreasing days. This indicates that the company has become more efficient in managing its working capital and generating cash from its operations.
The negative values of the cash conversion cycle suggest that J.B. Hunt Transport Services, Inc. is able to convert its inventory into cash more quickly than it pays its suppliers. This can be a positive indicator of strong liquidity and efficient operations.
Overall, the improving trend in the cash conversion cycle reflects positively on the company's operational effectiveness and financial management. However, it is essential for the company to continue monitoring and managing its working capital effectively to sustain this improvement in the long term.