Knight Transportation Inc (KNX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 13.96 | 17.32 | 17.98 | 18.15 |
| Receivables turnover | 7.48 | 8.17 | 6.56 | 8.00 | 8.97 |
| Payables turnover | 15.24 | 21.60 | 14.77 | 26.65 | 28.22 |
| Working capital turnover | — | 12.39 | 17.67 | 55.87 | — |
Inventory turnover is not available in the data provided for Knight-Swift Transportation Holdings Inc. Receivables turnover has been fluctuating over the past years, with a decrease in 2021 followed by a slight increase in 2022. This ratio indicates how efficiently the company is collecting its receivables from customers.
Payables turnover is consistently reported as 0.00 across all years, suggesting that the company may not have data available or may not be monitoring this metric closely. Payables turnover ratio reflects how efficiently a company is managing its payables.
Working capital turnover shows a significant decrease over the years, indicating a declining trend in the company's ability to generate revenue relative to its working capital. This ratio provides insights into how effectively the company is utilizing its working capital to generate sales.
In conclusion, the analysis of activity ratios for Knight-Swift Transportation Holdings Inc suggests fluctuations in receivables turnover, lack of data availability or tracking of payables turnover, and a declining trend in working capital turnover over the years. Further investigation and comparison with industry peers may provide deeper insights into the company's operational efficiency and financial performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 26.14 | 21.08 | 20.30 | 20.11 |
| Days of sales outstanding (DSO) | days | 48.78 | 44.68 | 55.63 | 45.64 | 40.67 |
| Number of days of payables | days | 23.95 | 16.90 | 24.71 | 13.69 | 12.93 |
Knight-Swift Transportation Holdings Inc's Days of Sales Outstanding (DSO) ratio has shown some fluctuation over the past five years. In 2023, the DSO was 48.78 days, an increase from the previous year's 44.28 days. This indicates that, on average, it took the company 48.78 days to collect its accounts receivable in 2023.
The Days of Inventory on Hand (DOH) data is not provided, so it is not possible to analyze the efficiency of inventory turnover for the company.
The trend in DSO suggests that Knight-Swift Transportation Holdings Inc may be facing challenges in efficiently collecting payments from customers. A high DSO can indicate extended credit terms or potential issues with the collection process, which may impact liquidity and working capital management.
To gain a more comprehensive understanding of the company's liquidity position and operational efficiency, it would be beneficial to analyze the number of days of payables as well. Unfortunately, this data is not provided in the table.
Overall, Knight-Swift Transportation Holdings Inc's DSO ratio warrants further investigation to identify areas for improvement in managing accounts receivable and enhancing cash flow performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.55 | 1.94 | 1.69 | 1.56 | 1.70 |
| Total asset turnover | 0.55 | 0.68 | 0.56 | 0.55 | 0.58 |
The fixed asset turnover ratio measures the efficiency with which a company generates sales revenue from its fixed assets. Knight-Swift Transportation Holdings Inc's fixed asset turnover has shown fluctuations in recent years, with a peak of 1.94 in 2022, indicating that the company generated $1.94 in sales for every $1 of fixed assets. This ratio decreased slightly to 1.55 in 2023, suggesting a lesser efficiency in utilizing fixed assets for revenue generation compared to the previous year. Overall, the company has maintained a relatively stable performance in this ratio range between 1.55 and 1.70 over the past five years.
On the other hand, the total asset turnover ratio assesses how effectively a company utilizes all its assets to generate revenue. Knight-Swift Transportation Holdings Inc's total asset turnover has also displayed variability, ranging from 0.55 to 0.68 during the same period. The ratio decreased to 0.55 in 2023 from 0.68 in 2022, indicating a decline in the company's ability to generate sales relative to its total assets. This downward trend in total asset turnover suggests potential challenges in efficiently utilizing its total asset base to drive revenue growth.
In conclusion, although Knight-Swift Transportation Holdings Inc has maintained relatively stable fixed asset turnover ratios over the years, its total asset turnover has shown a decreasing trend. Further analysis of the company's operational efficiency and asset management strategies may be necessary to address the decline in total asset turnover and enhance long-term profitability.