Knight Transportation Inc (KNX)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	168,545	196,770	261,001	156,699	159,722
Short-term investments	US$ in thousands	0	1,668	74,201	18,675	8,722
Total current liabilities	US$ in thousands	1,825,290	894,007	1,074,820	839,708	993,038
Cash ratio		0.09	0.22	0.31	0.21	0.17

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($168,545K + $0K) ÷ $1,825,290K
= 0.09

The cash ratio of Knight-Swift Transportation Holdings Inc has shown variability over the past five years. The company's cash ratio was at its lowest in 2019 at 0.26, indicating that only 26% of its current liabilities could be covered by its cash reserves at that time. Subsequently, there was an improvement in 2020 to 0.31, followed by a further increase in 2021 to 0.37, suggesting a strengthening liquidity position.

However, in 2022, there was a significant jump in the cash ratio to 0.40, indicating a substantial improvement in the company's ability to cover its short-term obligations with its available cash. Nevertheless, in 2023, the cash ratio decreased to 0.20, reflecting a decline in the proportion of cash available to cover current liabilities compared to the previous year.

Overall, although the cash ratio has fluctuated over the years, Knight-Swift Transportation Holdings Inc has generally maintained a reasonable level of liquidity to meet its short-term obligations. It is essential for the company to manage its cash position effectively to ensure it can meet its financial commitments as they come due.