Knight Transportation Inc (KNX)

Working capital 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
Revenue (ttm)	US$ in thousands	7,141,770	6,953,470	6,830,370	7,238,520	7,428,580	7,501,820	7,247,420	6,601,990	5,998,010	5,459,110	5,027,080	4,772,080	4,673,870	4,592,720	4,582,830	4,764,210	4,843,950	5,041,780	5,187,870	5,277,470
Total current assets	US$ in thousands	1,709,020	1,761,170	1,885,110	1,442,640	1,493,570	1,474,350	1,473,420	1,466,270	1,414,280	1,404,460	1,074,880	963,745	923,363	998,553	829,500	838,442	890,028	900,968	868,312	813,462
Total current liabilities	US$ in thousands	1,825,290	1,730,370	945,421	905,811	894,007	912,352	1,103,800	1,166,030	1,074,820	852,541	705,548	948,439	839,708	1,262,200	971,483	979,281	993,038	696,758	743,587	761,967
Working capital turnover		—	225.76	7.27	13.48	12.39	13.35	19.61	21.99	17.67	9.89	13.61	311.78	55.87	—	—	—	—	24.69	41.59	102.49

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,141,770K ÷ ($1,709,020K – $1,825,290K)
= —

Knight-Swift Transportation Holdings Inc's working capital turnover has shown significant fluctuations over the past eight quarters. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue.

In Q1 2022, the working capital turnover was at its peak at 21.99, indicating that the company was able to generate $21.99 in net sales for every dollar of working capital invested. However, this ratio decreased in subsequent quarters.

The ratio plummeted to 19.61 in Q2 2022, then further dropped to 13.35 in Q3 2022, and decreased even more to 12.39 in Q4 2022. These decreasing trends suggest a potential inefficiency in managing working capital to support sales growth during this period.

However, there was a significant spike in Q3 2023 when the working capital turnover ratio reached 225.76, which may have been influenced by various factors such as aggressive working capital management strategies or fluctuations in sales volume.

Overall, based on the fluctuations observed in the working capital turnover ratio for Knight-Swift Transportation Holdings Inc, further analysis of the company's working capital management policies and their impact on operational efficiency is recommended to understand the underlying reasons for these fluctuations.