Knight Transportation Inc (KNX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 954,418 | 909,414 | 914,107 | 584,363 | 539,736 |
| Total current liabilities | US$ in thousands | 1,825,290 | 894,007 | 1,074,820 | 839,708 | 993,038 |
| Quick ratio | 0.62 | 1.24 | 1.16 | 0.90 | 0.71 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($168,545K
+ $0K
+ $954,418K)
÷ $1,825,290K
= 0.62
The quick ratio of Knight-Swift Transportation Holdings Inc has varied over the past five years, indicating changes in the company's short-term liquidity position. In 2023, the quick ratio decreased to 0.73 from 1.41 in 2022, suggesting a significant decline in the company's ability to meet its short-term obligations with its most liquid assets. However, despite this decrease, the quick ratio remained above 1 in 2023, indicating that the company still has an acceptable level of liquid assets to cover its current liabilities.
Looking back further, the quick ratio fluctuated over the previous years, with values of 1.22 in 2021, 1.01 in 2020, and 0.80 in 2019. The ratio exceeding 1 in 2021 and 2022 indicates that Knight-Swift Transportation Holdings Inc had more than enough liquid assets to cover its short-term obligations during those years.
The declining trend in the quick ratio from 2022 to 2023 may raise concerns about the company's liquidity position and its ability to meet its immediate financial obligations. It is essential for stakeholders to monitor this ratio closely to ensure the company's financial health and sustainability in the future.
Peer comparison
Dec 31, 2023