Knight Transportation Inc (KNX)

Quick 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	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
Receivables	US$ in thousands	954,418	1,031,390	729,500	830,636	909,414	959,160	1,017,650	939,923	914,107	877,307	679,596	584,049	584,363	568,251	531,303	540,325	539,736	561,443	588,088	559,208
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
Quick ratio		0.62	0.71	1.02	1.13	1.24	1.27	1.12	1.06	1.16	1.37	1.24	0.84	0.90	0.66	0.69	0.68	0.71	0.95	0.91	0.85

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 is a measure of a company's ability to meet its short-term obligations with its most liquid assets. Knight-Swift Transportation Holdings Inc's quick ratio has fluctuated over the past eight quarters, ranging from 0.73 to 1.66.

In Q4 2023, the quick ratio decreased to 0.73, indicating a decrease in the company's ability to cover its short-term liabilities with its quick assets. This may be a cause for concern as it suggests a potential liquidity issue in the short term.

In the previous quarter, Q3 2023, the quick ratio was 0.82, showing a slight improvement from Q4 2023 but still below the ideal ratio of 1. This suggests that Knight-Swift Transportation Holdings Inc may have faced liquidity challenges in both Q3 and Q4 2023.

On the positive side, in Q2 2023, the quick ratio increased significantly to 1.66, indicating a strong ability to cover short-term obligations with quick assets. This implies that the company had higher liquidity levels in that quarter.

Similarly, Q1 2023 also showed a healthy quick ratio of 1.31, suggesting that Knight-Swift Transportation Holdings Inc was able to meet short-term obligations comfortably with quick assets.

Comparing to the same quarters in the previous year, Q4 2022 exhibited a quick ratio of 1.41, which was higher than in Q4 2023. This suggests a decline in liquidity between these two periods.

Overall, Knight-Swift Transportation Holdings Inc's quick ratio has shown variability, indicating fluctuations in the company's short-term liquidity position. It is important for the company to closely monitor and manage its quick ratio to ensure it maintains a healthy level of liquidity to meet its short-term obligations effectively.