Knight Transportation Inc (KNX)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	7,141,770	7,428,580	5,998,020	4,673,860	4,843,950
Property, plant and equipment	US$ in thousands	4,616,400	3,835,040	3,555,360	2,992,650	2,850,720
Fixed asset turnover		1.55	1.94	1.69	1.56	1.70

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,141,770K ÷ $4,616,400K
= 1.55

The fixed asset turnover ratio of Knight-Swift Transportation Holdings Inc has exhibited some variability over the past five years. The company's fixed asset turnover was 1.55 in 2023, a decrease from 1.94 in 2022. This decline suggests that the company generated $1.55 in revenue for every dollar invested in fixed assets in 2023, compared to $1.94 in 2022.

Despite the decrease in 2023, the ratio remains relatively stable when compared to the figures from 2021 (1.69), 2020 (1.56), and 2019 (1.70). This consistency indicates that Knight-Swift Transportation Holdings Inc has been relatively efficient in generating revenue from its fixed assets over the years.

It is important to note that a higher fixed asset turnover ratio is generally preferred as it indicates that the company is utilizing its fixed assets more efficiently to generate sales revenue. On the other hand, a lower ratio may suggest underutilization or inefficiency in the utilization of fixed assets.

In conclusion, while there was a slight decline in fixed asset turnover in 2023 compared to the previous year, Knight-Swift Transportation Holdings Inc has generally maintained a consistent level of efficiency in utilizing its fixed assets to generate revenue over the five-year period.