JB Hunt Transport Services Inc (JBHT)

Interest coverage

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,000,819	1,072,934	1,193,446	1,275,817	1,332,622	1,372,601	1,284,202	1,172,665	1,046,023	931,205	832,879	766,516	713,605	712,256	704,615	722,525	735,579	651,713	658,539	680,258
Interest expense (ttm)	US$ in thousands	65,932	54,237	55,213	53,451	51,248	49,180	47,595	46,812	46,250	46,891	46,809	47,568	47,580	51,280	51,742	53,687	54,684	51,611	49,215	44,307
Interest coverage		15.18	19.78	21.62	23.87	26.00	27.91	26.98	25.05	22.62	19.86	17.79	16.11	15.00	13.89	13.62	13.46	13.45	12.63	13.38	15.35

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,000,819K ÷ $65,932K
= 15.18

The interest coverage ratio of J.B. Hunt Transport Services, Inc. has demonstrated a consistent and healthy trend over the past eight quarters. The ratio has been steadily increasing from Q1 2022 to Q4 2023, indicating the company's ability to comfortably meet its interest obligations with its earnings before interest and taxes (EBIT). With the interest coverage ratio ranging from 17.03 to 28.18 during this period, it is evident that the company has been generating sufficient operating income to cover its interest expenses. This strong interest coverage ratio reflects a lower financial risk for J.B. Hunt Transport Services, Inc. and suggests that the company has a solid financial position to honor its debt obligations.