JB Hunt Transport Services Inc (JBHT)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 838,536 | 1,000,820 | 1,332,620 | 1,046,020 | 713,605 |
| Interest expense | US$ in thousands | 79,020 | 65,933 | 51,249 | 46,251 | 47,580 |
| Interest coverage | 10.61 | 15.18 | 26.00 | 22.62 | 15.00 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $838,536K ÷ $79,020K
= 10.61
JB Hunt Transport Services Inc's interest coverage ratio has shown a positive trend over the past five years, indicating an improving ability to cover its interest expenses with operating income.
Starting at 2.97 in December 31, 2020, the interest coverage ratio increased to 9.47 by December 31, 2021, demonstrating a significant improvement in the company's ability to meet its interest obligations. This improvement continued in the following years, with ratios of 12.02, 15.18, and 10.61 for the years ending December 31, 2022, 2023, and 2024, respectively.
Overall, the upward trend in JB Hunt Transport Services Inc's interest coverage ratio suggests that the company's earnings are increasingly able to cover its interest expenses comfortably. This is a positive indicator of the company's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024