JB Hunt Transport Services Inc (JBHT)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,326,110	1,261,740	945,257	1,305,420	1,295,740
Total stockholders’ equity	US$ in thousands	4,103,760	3,666,770	3,117,820	2,600,140	2,267,030
Debt-to-capital ratio		0.24	0.26	0.23	0.33	0.36

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,326,110K ÷ ($1,326,110K + $4,103,760K)
= 0.24

The debt-to-capital ratio of J.B. Hunt Transport Services, Inc. has shown a decreasing trend over the past five years. The ratio decreased from 0.36 in 2019 to 0.28 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments relative to its total capital structure. A lower debt-to-capital ratio generally suggests a lower financial risk and higher financial stability for the company, as it signifies less leverage and a greater proportion of equity in the capital structure. This trend may be viewed positively by investors and creditors, as it demonstrates improved financial health and potentially greater capacity to weather economic downturns or invest in growth opportunities.