JB Hunt Transport Services Inc (JBHT)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,000,819	1,072,934	1,193,446	1,275,817	1,332,622	1,372,601	1,284,202	1,172,665	1,046,023	931,205	832,879	766,516	713,605	712,256	704,615	722,525	735,579	651,713	658,539	680,258
Long-term debt	US$ in thousands	1,326,110	1,195,710	1,195,310	991,710	1,261,740	1,243,810	945,999	945,628	945,257	944,887	1,303,470	1,301,430	1,305,420	1,303,350	1,307,020	1,302,760	1,295,740	1,293,310	1,372,140	1,284,550
Total stockholders’ equity	US$ in thousands	4,103,760	4,018,100	3,911,920	3,797,370	3,666,770	3,505,110	3,324,860	3,253,540	3,117,820	2,922,230	2,799,030	2,722,070	2,600,140	2,487,420	2,390,840	2,282,420	2,267,030	2,193,530	2,135,360	2,203,760
Return on total capital		18.43%	20.58%	23.37%	26.64%	27.04%	28.90%	30.07%	27.93%	25.74%	24.08%	20.30%	19.05%	18.27%	18.79%	19.05%	20.15%	20.65%	18.69%	18.78%	19.50%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,000,819K ÷ ($1,326,110K + $4,103,760K)
= 18.43%

J.B. Hunt Transport Services, Inc. has shown a consistent trend of decreasing return on total capital over the past eight quarters. The return on total capital has decreased from 27.02% in Q4 2022 to 17.49% in Q4 2023. This indicates that the company's ability to generate profits from its total capital base has declined. It is important for the company to assess the reasons behind this decline and take necessary actions to improve its return on total capital in order to enhance shareholders' value and ensure sustainable growth in the long term.