Knight Transportation Inc (KNX)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 365,945 168,545 196,770 261,001 156,699
Short-term investments US$ in thousands -147,684 530 7,175 5,866 9,001
Receivables US$ in thousands — — — — —
Total current liabilities US$ in thousands 1,706,750 1,825,290 894,007 1,074,820 839,708
Quick ratio 0.13 0.09 0.23 0.25 0.20

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($365,945K + $-147,684K + $—K) ÷ $1,706,750K
= 0.13

The quick ratio of Knight Transportation Inc has shown some fluctuations over the years. It stood at 0.20 as of December 31, 2020, indicating that the company had $0.20 in liquid assets available to cover each $1 of current liabilities. It increased to 0.25 by December 31, 2021, suggesting a slight improvement in the company's short-term liquidity position. However, the ratio decreased to 0.23 by December 31, 2022, before experiencing a significant decline to 0.09 by December 31, 2023. This sharp decrease may raise concerns about the company's ability to meet its short-term obligations with its current liquid assets. Subsequently, the ratio rose to 0.13 by December 31, 2024, showing some recovery but still indicating a relatively low level of liquidity. Overall, Knight Transportation Inc's quick ratio trend suggests varying levels of liquidity challenges over the years, highlighting the importance of closely monitoring the company's ability to meet its short-term financial obligations.