Knight Transportation Inc (KNX)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 6.25 | — | — | — | 32.33 | 58.78 | 23.76 | 22.06 | 16.94 | 14.05 | 17.15 | 15.27 | 14.89 | 12.74 | 14.01 | 14.75 | 14.35 | 13.77 | 13.57 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 6.25 | 0.00 | 0.00 | 0.00 | 32.33 | 58.78 | 23.76 | 22.06 | 16.94 | 14.05 | 17.15 | 15.27 | 14.89 | 12.74 | 14.01 | 14.75 | 14.35 | 13.77 | 13.57 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Knight Transportation Inc experienced fluctuations over the analyzed period. It started at around 13-15 days in 2020 and remained relatively stable until the first quarter of 2021. From June 2021 to September 2022, there was some volatility, with values ranging from 12 to 17 days.
In the second half of 2022, the cash conversion cycle increased significantly, reaching 22 days in December 2022 and further increasing to 58 days by June 2023, indicating potential inefficiencies in managing cash, inventory, and receivables during this period.
However, from the third quarter of 2023 onwards, there was a drastic improvement, with the cash conversion cycle plummeting to 0 days by the end of 2023 and maintaining this optimal level through the first half of 2024. This sudden improvement suggests that Knight Transportation Inc successfully streamlined its operations, reducing the time it takes to convert its investments in inventory and receivables back into cash.
The overall trend of the cash conversion cycle indicates that Knight Transportation Inc has effectively managed its working capital in recent years, with the recent significant improvement suggesting enhanced efficiency in its cash management processes.
Peer comparison
Dec 31, 2024