Knight Transportation Inc (KNX)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 365,945 168,545 196,770 261,001 156,699
Short-term investments US$ in thousands -147,684 530 7,175 5,866 9,001
Total current liabilities US$ in thousands 1,706,750 1,825,290 894,007 1,074,820 839,708
Cash ratio 0.13 0.09 0.23 0.25 0.20

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($365,945K + $-147,684K) ÷ $1,706,750K
= 0.13

The cash ratio of Knight Transportation Inc has shown variations over the years based on the data provided. It increased from 0.20 in December 31, 2020, to 0.25 by December 31, 2021, indicating a stronger liquidity position. However, it slightly decreased to 0.23 by December 31, 2022.

There was a significant drop in the cash ratio to 0.09 by December 31, 2023, which may raise concerns about the company's ability to cover its short-term liabilities with cash and cash equivalents. The ratio improved slightly to 0.13 by December 31, 2024, but it is still relatively lower compared to the previous years.

Overall, while the cash ratio fluctuated during the period, it is essential for Knight Transportation Inc to closely monitor its liquidity position to ensure it maintains sufficient cash reserves to meet its short-term obligations effectively.