Knight Transportation Inc (KNX)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	5,413,270	5,030,680	4,734,340	4,808,580	4,769,744	4,251,784	4,034,815	3,625,348	3,290,597	3,010,657	2,775,839	2,704,419	2,692,057	2,591,485	2,654,085	2,759,828	2,853,977	2,894,650	2,958,854	3,014,727
Payables	US$ in thousands	355,173	299,039	223,482	214,574	220,849	229,555	220,469	248,762	224,844	177,634	151,704	126,918	101,001	140,228	128,731	168,018	99,194	145,155	165,085	158,646
Payables turnover		15.24	16.82	21.18	22.41	21.60	18.52	18.30	14.57	14.64	16.95	18.30	21.31	26.65	18.48	20.62	16.43	28.77	19.94	17.92	19.00

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,413,270K ÷ $355,173K
= 15.24

The payables turnover ratio for Knight-Swift Transportation Holdings Inc has been fluctuating over the past eight quarters. In the most recent quarter, Q4 2023, the payables turnover was reported as 0.00, indicating that the company did not effectively manage its accounts payable during this period. This marks a substantial decline from the previous quarter, Q3 2023, also at 0.00.

Looking back further, we see a notable downward trend in the payables turnover ratio since Q1 2022, where the ratio was reported at 6.05. This suggests that Knight-Swift Transportation Holdings Inc took significantly longer to pay off its suppliers and vendors in the recent quarters compared to earlier periods.

The sudden decrease and consistent 0.00 values in the payables turnover ratio in the last two quarters hint at potential liquidity issues or inefficiencies in managing the company's accounts payable. It may be beneficial for the company to closely monitor and improve its accounts payable processes to enhance its working capital management and supplier relationships. In conclusion, the deteriorating trend in Knight-Swift Transportation Holdings Inc's payables turnover ratio raises concerns about its short-term liquidity and operational efficiency.