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.