Knight Transportation Inc (KNX)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.85 | 1.01 | 0.88 | 0.93 | 0.94 | 1.02 | 1.99 | 1.59 | 1.67 | 1.62 | 1.33 | 1.26 | 1.32 | 1.65 | 1.52 | 1.02 | 1.10 | 0.79 | 0.85 | 0.86 |
| Quick ratio | 0.13 | 0.22 | 0.20 | 0.21 | 0.26 | 0.11 | 0.25 | 0.22 | 0.23 | 0.22 | 0.19 | 0.22 | 0.25 | 0.32 | 0.27 | 0.21 | 0.20 | 0.20 | 0.13 | 0.13 |
| Cash ratio | 0.13 | 0.22 | 0.20 | 0.21 | 0.26 | 0.11 | 0.25 | 0.22 | 0.23 | 0.22 | 0.19 | 0.22 | 0.25 | 0.32 | 0.27 | 0.21 | 0.20 | 0.20 | 0.13 | 0.13 |
Knight Transportation Inc's liquidity ratios improved steadily over the last few years. The current ratio increased from 0.86 in March 2020 to 0.85 in June 2020, but then saw a consistent upward trend, reaching 1.67 by December 2022. However, the ratio dipped slightly to 0.85 by December 2024.
In terms of the quick ratio, Knight Transportation Inc's performance was also positive, with a general increase from 0.13 in March 2020 to 0.22 in December 2022. The ratio fluctuated between 0.13 and 0.26 in the following two years, ending at 0.13 in December 2024.
The cash ratio, reflecting the company's ability to cover immediate liabilities with cash and cash equivalents, mirrored the trend of the quick ratio, increasing consistently until December 2022 and fluctuating thereafter. It ranged from 0.11 to 0.32 during the period under review.
Overall, Knight Transportation Inc's liquidity ratios showed improvement over the years, indicating a better ability to meet short-term obligations, although there was some variability in the ratios in the latter part of the period.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle for Knight Transportation Inc has been fluctuating over the years. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales.
From March 31, 2020, to June 30, 2021, the cash conversion cycle remained relatively stable, ranging from around 12 to 14 days, indicating efficient management of working capital. However, there was a noticeable increase in the cycle in the following quarters, peaking at 58.78 days on June 30, 2023, signaling potential challenges in managing cash flow and working capital during that period.
The significant fluctuations in the cash conversion cycle, particularly the sudden drop to 0 days in the last quarter of 2023 and first quarter of 2024 followed by a subsequent rise, could indicate irregularities in financial reporting or unusual business operations during that period. Further investigation into these anomalous data points is warranted for a more accurate assessment of Knight Transportation Inc's financial health and operational efficiency.