Knight Transportation Inc (KNX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 19.77 | 16.55 | 23.91 | 24.74 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | 12.39 | 17.67 | 55.87 |
The activity ratios for Knight Transportation Inc based on the provided data are as follows:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times its inventory is sold and replaced over a period.
- Knight Transportation Inc's inventory turnover has been decreasing gradually from 24.74 in 2020 to 19.77 in 2023.
- A high inventory turnover ratio indicates that the company is selling its goods quickly, while a low ratio may suggest potential issues with sales or overstocking.
2. Receivables Turnover:
- The receivables turnover ratio indicates how efficiently a company collects payments on its credit sales.
- The data provided shows that Knight Transportation Inc's receivables turnover is not available for analysis, indicating a lack of information regarding the company's collection of accounts receivable.
3. Payables Turnover:
- The payables turnover ratio evaluates how efficiently a company pays its suppliers relative to its credit purchases.
- Similar to receivables turnover, the payables turnover data is not available, which hinders the analysis of Knight Transportation Inc's payment practices.
4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales.
- Knight Transportation Inc's working capital turnover has been declining over the years, from 55.87 in 2020 to 12.39 in 2022, indicating a decrease in the company's sales generation efficiency.
- A decreasing working capital turnover may suggest that the company is not effectively utilizing its resources to drive revenue growth.
In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into Knight Transportation Inc's operational efficiency, the lack of data on receivables and payables turnover limits a comprehensive assessment of the company's overall activity management. Further information on these ratios would be necessary to obtain a more complete understanding of Knight Transportation Inc's performance in managing its inventory, receivables, payables, and working capital.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 18.46 | 22.06 | 15.27 | 14.75 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Knight Transportation Inc, we can analyze the activity ratios as follows:
1. Days of Inventory on Hand (DOH):
- The DOH indicates how many days it takes for the company to sell its entire inventory.
- Knight Transportation Inc's DOH has increased from 14.75 days in 2020 to 18.46 days in 2023.
- A higher DOH may suggest slower inventory turnover, which could tie up capital and potentially lead to obsolescence.
2. Days of Sales Outstanding (DSO):
- DSO measures the average number of days it takes the company to collect revenue after a sale is made.
- The data provided does not include DSO figures for Knight Transportation Inc.
- Typically, a lower DSO indicates efficient credit management and faster cash conversion.
3. Number of Days of Payables:
- This ratio shows how long the company takes to pay its suppliers.
- Unfortunately, the data does not provide information on Knight Transportation Inc's number of days of payables.
- A longer payable period could indicate the company's ability to manage cash flow effectively.
In summary, while we have details on Knight Transportation Inc's Days of Inventory on Hand, no information is available for Days of Sales Outstanding or Number of Days of Payables. The increasing trend in DOH suggests the company may be taking longer to sell its inventory over the years, which could have implications for working capital management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 1.84 | 1.62 | 1.56 |
| Total asset turnover | 0.58 | 0.55 | 0.68 | 0.56 | 0.55 |
The fixed asset turnover ratio for Knight Transportation Inc has shown a generally increasing trend over the years, from 1.56 in 2020 to 1.62 in 2021, further improving to 1.84 in 2022. This indicates that the company is generating more revenue per dollar of fixed assets invested, reflecting improved efficiency in utilizing its long-term assets.
On the other hand, the total asset turnover ratio has been somewhat fluctuating, standing at 0.55 in 2020 and 2023, with a slight increase to 0.56 in 2021 and further improvement to 0.68 in 2022, before slightly dropping to 0.58 in 2024. Overall, the company generates revenue at a slower pace relative to its total assets compared to fixed assets specifically. This could suggest that the company may have lower sales relative to its total asset base or that its fixed assets are more efficiently utilized in generating revenue.
In conclusion, while Knight Transportation Inc has shown improvement in its efficiency in generating revenue from fixed assets, there may be room for further optimization in utilizing its total assets to enhance overall revenue generation.