Knight Transportation Inc (KNX)

Short-term

Turnover ratios

Knight Transportation Inc's activity ratios exhibit varying trends over the years based on the provided data:

1. Inventory Turnover:
- The inventory turnover ratio, which measures how many times a company's inventory is sold and replaced over a period, shows a decreasing trend from March 31, 2023, to September 30, 2024.
- The inventory turnover ratio peaked at 58.38 on September 30, 2024, indicating a significant improvement in the management of inventory levels.

2. Receivables Turnover:
- Unfortunately, there is a lack of data for the receivables turnover ratio, which indicates how effectively a company collects outstanding payments from its customers.
- Without this information, it is challenging to assess the efficiency of Knight Transportation Inc in managing its receivables.

3. Payables Turnover:
- Similar to the receivables turnover, there is no data available for the payables turnover ratio, which evaluates how quickly a company pays its suppliers.
- As a result, it is unclear how efficiently Knight Transportation Inc manages its payables during the specified periods.

4. Working Capital Turnover:
- The working capital turnover ratio, which measures how efficiently a company utilizes its working capital to generate sales, exhibits fluctuations throughout the years.
- Notably, the ratio saw a drastic increase on December 31, 2023, and September 30, 2024, indicating a significant improvement in working capital efficiency during these periods.

In conclusion, while inventory turnover and working capital turnover provide insights into the efficiency of inventory management and working capital utilization, the lack of data for receivables turnover and payables turnover limits a comprehensive assessment of Knight Transportation Inc's overall activity ratios. The company may benefit from enhancing its accounts receivable and accounts payable management practices to further optimize its operational efficiency.

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Average number of days

Based on the provided data for Knight Transportation Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand represent the number of days it takes the company to sell its average inventory.
- Knight Transportation Inc's DOH has fluctuated over the periods presented, indicating changes in the company's inventory management efficiency.
- The trend shows an increase in DOH from March 31, 2020 to June 30, 2022, followed by significant fluctuations and a sharp increase to 58.78 days on June 30, 2023.
- The decrease in the most recent periods suggests a potential improvement in inventory turnover efficiency.

2. Days of Sales Outstanding (DSO):
- There is no data available for the days of sales outstanding, which typically measures the average number of days it takes for a company to collect revenue after a sale.
- Without this metric, we are unable to evaluate Knight Transportation Inc's effectiveness in collecting accounts receivable.

3. Number of Days of Payables:
- There is no available data on the number of days of payables, which usually represents the average number of days a company takes to pay its suppliers.
- Without this information, it is challenging to assess Knight Transportation Inc's payment practices and liquidity management in terms of accounts payable.

In summary, while we can make some observations regarding Knight Transportation Inc's inventory management based on the DOH data, the lack of information on DSO and payables limits the holistic analysis of the company's overall activity ratios and working capital management performance.

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Long-term

Knight Transportation Inc's Fixed Asset Turnover ratio has shown some fluctuations over the observed period. The ratio started at 1.66 in March 2020, declined gradually to 1.39 by September 2023, then remained unchanged for the following periods. This indicates the company's ability to generate revenue from its fixed assets has varied, potentially highlighting changes in operational efficiency or asset utilization.

On the other hand, the Total Asset Turnover ratio demonstrates a similar trend, starting at 0.57 in March 2020, increasing to 0.70 by September 2022, before stabilizing between 0.54 and 0.61 from March 2023 to June 2024. This ratio reflects how efficiently the company is using all its assets to generate sales, suggesting improvements in asset turnover efficiency over time.

Overall, the analysis of Knight Transportation Inc's long-term activity ratios suggests that while there were fluctuations in the Fixed Asset Turnover ratio, the Total Asset Turnover ratio has shown a more consistent improvement in asset utilization efficiency.