JB Hunt Transport Services Inc (JBHT)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,000,820 | 1,332,620 | 1,046,020 | 713,605 | 735,579 |
| Interest expense | US$ in thousands | 65,933 | 51,249 | 46,251 | 47,580 | 54,684 |
| Interest coverage | 15.18 | 26.00 | 22.62 | 15.00 | 13.45 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,000,820K ÷ $65,933K
= 15.18
The interest coverage ratio for J.B. Hunt Transport Services, Inc. has been consistently healthy and improving over the past five years. The company's ability to cover its interest expenses with operating profits has been strong, with the ratio ranging from 13.86 in 2019 to 26.54 in 2022.
In 2023, the interest coverage ratio decreased to 17.03, which is still considered robust and indicates that the company is well-positioned to meet its interest obligations. This suggests that J.B. Hunt Transport Services, Inc. has a sufficient operating income to cover its interest expenses, providing a good margin of safety.
Overall, the trend in the interest coverage ratio reflects positively on the company's financial health and ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023