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.