JB Hunt Transport Services Inc (JBHT)

Solvency ratios

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
Debt-to-assets ratio 0.16 0.14 0.14 0.13 0.16 0.17 0.13 0.13 0.14 0.15 0.21 0.21 0.22 0.23 0.24 0.24 0.24 0.24 0.25 0.24
Debt-to-capital ratio 0.24 0.23 0.23 0.21 0.26 0.26 0.22 0.23 0.23 0.24 0.32 0.32 0.33 0.34 0.35 0.36 0.36 0.37 0.39 0.37
Debt-to-equity ratio 0.32 0.30 0.31 0.26 0.34 0.35 0.28 0.29 0.30 0.32 0.47 0.48 0.50 0.52 0.55 0.57 0.57 0.59 0.64 0.58
Financial leverage ratio 2.08 2.08 2.11 2.05 2.12 2.12 2.18 2.16 2.18 2.23 2.26 2.26 2.28 2.32 2.32 2.36 2.41 2.46 2.54 2.42

The solvency ratios of J.B. Hunt Transport Services, Inc. indicate the company's ability to meet its long-term financial obligations and the extent to which it is reliant on debt financing.

The debt-to-assets ratio has remained relatively stable over the quarters, ranging between 0.16 and 0.18. This indicates that, on average, between 16% to 18% of the company's assets are financed by debt. A lower ratio suggests lower financial risk as it indicates the company has a smaller proportion of its assets funded by debt.

The debt-to-capital ratio has also shown consistency, hovering around 0.26 to 0.28. This ratio reflects that between 26% to 28% of the company's capital structure is composed of debt. A lower ratio is generally preferred as it signifies a lower financial risk and less dependence on external borrowing.

The debt-to-equity ratio has exhibited a similar pattern, with values ranging from 0.33 to 0.40. This ratio indicates the proportion of the company's assets that are financed by equity compared to debt. A lower ratio is typically seen as favorable as it implies lower financial risk and a stronger equity position.

The financial leverage ratio has fluctuated slightly but has generally been between 2.05 and 2.18. This ratio reflects the company's level of debt in relation to its equity, with a higher ratio indicating higher financial risk.

Overall, J.B. Hunt Transport Services, Inc. has maintained a moderate level of leverage in its capital structure, with consistent but not alarming solvency ratios across the quarters analyzed.

Coverage ratios

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
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

Based on the data provided, J.B. Hunt Transport Services, Inc. has consistently displayed a strong interest coverage ratio over the past eight quarters. The interest coverage ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).

The trend shows an improving interest coverage ratio over time, indicating the company's increasing ability to meet its interest obligations comfortably. The ratio has consistently been above 15, which is generally considered a healthy level.

The ratio peaked at 28.18 in Q3 2022 and has seen a slight decline since then, settling at 17.03 in Q4 2023. Despite this recent decrease, the interest coverage remains at a level that indicates the company's ability to easily service its interest payments.

Overall, based on the consistent and relatively high interest coverage ratios observed, J.B. Hunt Transport Services, Inc. appears to have a solid financial position with respect to covering its interest expenses.