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.