JB Hunt Transport Services Inc (JBHT)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.07 | 2.08 | 2.11 | 2.18 | 2.29 |
JB Hunt Transport Services Inc demonstrates strong solvency based on its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently remained at 0.00 over the past five years, indicating that the company has no significant debt relative to its assets, capital, or equity. This implies a low level of financial risk and a healthy balance sheet structure.
Additionally, the Financial leverage ratio has shown a decreasing trend from 2.29 in 2020 to 2.07 in 2024. A decreasing financial leverage ratio signifies that the company is relying less on debt financing to fund its operations and growth, which can enhance financial stability and flexibility.
Overall, the solvency ratios of JB Hunt Transport Services Inc reflect a sound financial position with minimal debt obligations and effective management of financial leverage.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 10.61 | 15.18 | 12.02 | 9.47 | 2.97 |
JB Hunt Transport Services Inc's interest coverage ratio has shown a positive trend over the past five years. As of December 31, 2020, the company's interest coverage ratio stood at 2.97, indicating that the company generated 2.97 times the operating income to cover its interest expenses.
The ratio improved significantly to 9.47 as of December 31, 2021, showcasing a stronger ability to cover interest payments. By December 31, 2022, the interest coverage ratio further increased to 12.02, demonstrating a more than adequate buffer to meet interest obligations.
The positive trend continued in the subsequent years, reaching 15.18 as of December 31, 2023, indicating a robust ability to service debt through operating earnings. However, there was a slight dip in the interest coverage ratio to 10.61 as of December 31, 2024, but it still reflects a healthy coverage of interest payments.
Overall, the improving trend in JB Hunt Transport Services Inc's interest coverage ratio suggests that the company's operating income is consistently growing and is more than sufficient to meet its interest obligations, indicating a stronger financial position and lower risk of default on debt payments.