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.
Peer comparison
Dec 31, 2023