Knight Transportation Inc (KNX)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	168,545	193,372	228,957	191,245	196,770	194,082	198,021	242,860	261,001	269,694	179,032	194,650	156,699	240,236	117,760	119,132	159,722	93,996	55,063	60,215
Short-term investments	US$ in thousands	0	0	3,054	2,968	1,668	3,195	15,859	53,352	74,201	21,063	19,707	22,555	18,675	21,859	17,436	9,843	8,722	4,783	31,040	30,139
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
Cash ratio		0.09	0.11	0.25	0.21	0.22	0.22	0.19	0.25	0.31	0.34	0.28	0.23	0.21	0.21	0.14	0.13	0.17	0.14	0.12	0.12

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 fluctuated over the past eight quarters. The ratio peaked at 0.89 in Q2 2023, indicating that the company had a high level of cash compared to its current liabilities at that time. This could suggest a strong ability to cover short-term financial obligations using cash on hand. However, the ratio decreased to 0.39 in Q1 2023, demonstrating a lower liquidity position.

In Q4 2023, the cash ratio further declined to 0.20, which may raise concerns about the company's ability to meet its short-term liabilities solely with cash reserves. Comparing this to historical data, the current cash ratio is below the levels seen in the previous quarters of 2023 and 2022, indicating a decrease in liquidity.

Overall, the downward trend in the cash ratio of Knight-Swift Transportation Holdings Inc from Q2 2023 to Q4 2023 suggests a potential reduction in cash reserves relative to current liabilities. This may necessitate monitoring and further analysis to understand the factors contributing to this change in liquidity position.