JB Hunt Transport Services Inc (JBHT)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.16 | 0.16 | 0.14 | 0.22 | 0.24 |
| Debt-to-capital ratio | 0.24 | 0.26 | 0.23 | 0.33 | 0.36 |
| Debt-to-equity ratio | 0.32 | 0.34 | 0.30 | 0.50 | 0.57 |
| Financial leverage ratio | 2.08 | 2.12 | 2.18 | 2.28 | 2.41 |
The solvency ratios of J.B. Hunt Transport Services, Inc. indicate a favorable trend over the past five years. The debt-to-assets ratio has decreased from 0.24 in 2019 to 0.18 in 2023, reflecting the company's ability to reduce its reliance on debt to finance its assets. Similarly, the debt-to-capital ratio has shown a declining trend, decreasing from 0.36 in 2019 to 0.28 in 2023, indicating that the company has been successful in decreasing debt as a proportion of its capital.
Moreover, the debt-to-equity ratio has also exhibited a decreasing trend, declining from 0.57 in 2019 to 0.38 in 2023. This signifies that the company has been reducing its debt relative to equity, which is a positive indication of financial health and lower financial risk.
Additionally, the financial leverage ratio has decreased over the years, reflecting an improvement in the company's ability to meet its financial obligations with a lower level of debt. The declining trend from 2.41 in 2019 to 2.08 in 2023 demonstrates better financial leverage management by the company.
Overall, the solvency ratios of J.B. Hunt Transport Services, Inc. paint a picture of improved financial stability and reduced reliance on debt financing, showcasing the company's ability to manage its financial obligations effectively.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 15.18 | 26.00 | 22.62 | 15.00 | 13.45 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
Analyzing J.B. Hunt Transport Services, Inc.'s interest coverage ratio over the past five years, it is evident that the company has maintained a healthy position with consistently high ratios. The interest coverage ratio has shown an increasing trend from 13.86 in 2019 to 17.03 in 2023, indicating a positive trend in the company's ability to cover its interest expenses.
The significant improvement in the interest coverage ratio from 2019 to 2023 suggests that J.B. Hunt Transport Services, Inc. has been effectively managing its interest obligations relative to its earnings. This indicates a strong financial position and efficient financial management by the company, instilling confidence in its ability to meet its debt obligations in the future.
Overall, the consistently high and improving interest coverage ratios for J.B. Hunt Transport Services, Inc. reflect a sound financial health and a robust ability to manage its debt servicing requirements.