JB Hunt Transport Services Inc (JBHT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 57.17% | 62.21% | 64.47% | 62.08% | 60.76% |
| Operating profit margin | 7.80% | 9.01% | 8.63% | 7.44% | 8.07% |
| Pretax margin | 7.34% | 8.66% | 8.25% | 6.95% | 7.48% |
| Net profit margin | 5.72% | 6.55% | 6.28% | 5.28% | 5.68% |
Over the past five years, J.B. Hunt Transport Services, Inc. has maintained a consistently high gross profit margin, averaging above 90%. This indicates that the company is efficient in managing its cost of goods sold and generating profit from its core operations.
In terms of operating profit margin, the company experienced some fluctuations but generally stayed within a range of 7% to 9%. This metric reflects J.B. Hunt's ability to control operating expenses and generate profits from its normal business activities.
Similarly, the pretax margin and net profit margin show steady performance over the years, with the company consistently achieving margins between 5% and 8%. These ratios demonstrate J.B. Hunt's effectiveness in managing its overall expenses and generating profits after accounting for taxes and other costs.
Overall, J.B. Hunt Transport Services, Inc. has demonstrated strong profitability over the years, as indicated by its stable margins across different levels of the income statement. This suggests that the company has been successful in generating value for its shareholders by efficiently managing costs and operations to drive profits.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.63% | 17.11% | 15.40% | 12.03% | 13.42% |
| Return on assets (ROA) | 8.53% | 12.45% | 11.20% | 8.54% | 9.44% |
| Return on total capital | 18.43% | 27.04% | 25.74% | 18.27% | 20.65% |
| Return on equity (ROE) | 17.75% | 26.44% | 24.40% | 19.46% | 22.78% |
J.B. Hunt Transport Services, Inc. has demonstrated consistent profitability over the past five years as reflected in its profitability ratios.
1. Operating return on assets (Operating ROA) has ranged from 11.63% to 17.10% over the period, indicating the company's ability to generate operating profits from its assets. The decreasing trend from 2018 to 2020 followed by an increase in 2021 and again a slight decrease in 2023 might imply fluctuations in operational efficiency.
2. Return on assets (ROA) has ranged from 8.53% to 12.45% over the period, with a similar downward trend from 2018 to 2020 followed by a slight recovery in 2021 and a decrease in 2023. This ratio reflects the overall profitability of the company's assets.
3. Return on total capital has ranged from 17.49% to 27.02% over the period, showing the return the company generates on all invested capital. The significant changes in this ratio over the years signify fluctuations in overall capital efficiency.
4. Return on equity (ROE) has ranged from 17.75% to 26.44% over the period, indicating the return generated for the company's shareholders. The downward trend followed by an uptick in 2021 and then a decrease in 2023 suggests varying levels of shareholder value creation.
Overall, while J.B. Hunt Transport Services, Inc. has maintained profitability and generated favorable returns for its stakeholders, the fluctuations in these ratios over the years suggest the need for further analysis to understand the underlying factors influencing the company's profitability.