JB Hunt Transport Services Inc (JBHT)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 934,887 | 1,281,370 | 999,772 | 666,025 | 680,895 |
| Revenue | US$ in thousands | 12,735,900 | 14,788,200 | 12,116,200 | 9,585,030 | 9,097,520 |
| Pretax margin | 7.34% | 8.66% | 8.25% | 6.95% | 7.48% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $934,887K ÷ $12,735,900K
= 7.34%
Over the past five years, J.B. Hunt Transport Services, Inc. has displayed fluctuations in its pretax margin, which measures the company's ability to generate profits before accounting for taxes relative to its total revenue. In 2023, the pretax margin decreased to 7.29% from 8.65% in 2022, indicating a reduction in profitability. However, it remained relatively stable compared to the margins in 2021 (8.22%) and 2019 (7.43%). The pretax margin in 2020 was slightly lower at 6.91%.
The downward trend in the pretax margin from 2022 to 2023 raises concerns about the company's efficiency in cost management or potential challenges in revenue generation. Further analysis of the company's income and expenses is recommended to identify the underlying causes of the margin contraction and to develop strategies for improvement to enhance profitability in the future.
Peer comparison
Dec 31, 2023