Knight Transportation Inc (KNX)
Working capital 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 |
| Total current assets | US$ in thousands | 1,709,020 | 1,493,570 | 1,414,280 | 923,363 | 890,028 |
| Total current liabilities | US$ in thousands | 1,825,290 | 894,007 | 1,074,820 | 839,708 | 993,038 |
| Working capital turnover | — | 12.39 | 17.67 | 55.87 | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,141,770K ÷ ($1,709,020K – $1,825,290K)
= —
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. Knight-Swift Transportation Holdings Inc's working capital turnover ratio has shown a declining trend over the past five years. In 2023 and 2019, specific data points are missing. However, for the available years, we observe a decrease from 55.87 in 2020 to 17.67 in 2021 and further down to 12.39 in 2022.
A high working capital turnover ratio typically indicates that the company is managing its working capital effectively to generate sales. Conversely, a declining ratio may suggest inefficiency in utilizing working capital or a slowdown in sales relative to the level of working capital.
Knight-Swift Transportation Holdings Inc may need to assess its working capital management strategies to improve efficiency and ensure optimal allocation of resources to support revenue generation. Further investigation into the reasons behind the declining trend in the working capital turnover ratio could provide valuable insights for the company's financial performance and sustainability.
Peer comparison
Dec 31, 2023