JB Hunt Transport Services Inc (JBHT)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	838,536	827,465	845,073	886,084	969,204	876,267	974,189	1,059,947	1,098,291	1,310,452	1,229,894	1,125,847	1,017,666	902,855	819,278	766,030	713,119	740,702	733,061	750,971
Interest expense (ttm)	US$ in thousands	79,020	72,928	64,763	59,169	58,309	53,168	54,144	52,382	50,179	48,687	47,102	46,319	45,757	46,405	46,323	47,082	47,094	49,526	49,988	51,933
Interest coverage		10.61	11.35	13.05	14.98	16.62	16.48	17.99	20.23	21.89	26.92	26.11	24.31	22.24	19.46	17.69	16.27	15.14	14.96	14.66	14.46

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $838,536K ÷ $79,020K
= 10.61

JB Hunt Transport Services Inc's interest coverage ratio has shown a generally positive trend over the periods presented in the data. The ratio has consistently increased from 14.46 in March 2020 to a peak of 26.92 in September 2022. This indicates the company's ability to meet its interest obligations with its operating income has significantly improved during this period.

However, there was a notable decrease in the interest coverage ratio from December 2022 to March 2024, dropping to 14.98 in March 2024. This decline may suggest a decrease in earnings relative to interest expenses during this period, potentially indicating increased financial risk.

Overall, while the company experienced fluctuations in its interest coverage ratio, it generally maintained a healthy level above 1, indicating that it was comfortably able to cover its interest payments throughout the period. It would be important to further analyze the reasons behind the fluctuations in the ratio to assess the company's financial health and risk profile accurately.