Knight Transportation Inc (KNX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.20% | 35.79% | 44.63% | 42.40% | 42.21% |
| Operating profit margin | 4.73% | 14.70% | 16.10% | 12.08% | 8.82% |
| Pretax margin | 3.81% | 13.74% | 16.24% | 11.97% | 8.53% |
| Net profit margin | 3.04% | 10.38% | 12.39% | 8.77% | 6.38% |
The profitability ratios of Knight-Swift Transportation Holdings Inc show varying levels of profitability over the past five years.
The gross profit margin remained consistently high at 100% throughout the period, indicating that the company was able to generate revenue efficiently and effectively manage its cost of goods sold.
The operating profit margin fluctuated over the years, with a noticeable decrease in 2023 compared to the previous year. This suggests that the company's operating efficiency may have declined, resulting in lower profitability from its core operations.
Similarly, the pretax margin also fluctuated, reaching a low point in 2023. This implies that the company's profitability before accounting for taxes decreased in that year.
The net profit margin, which reflects the company's bottom-line profitability after all expenses, also varied over the years. While it increased from 2019 to 2021, it declined in 2023. This may indicate changes in the company's cost structure, interest expenses, or other factors affecting its net profitability.
In summary, while Knight-Swift Transportation Holdings Inc maintained a consistently high gross profit margin, its operating profit margin, pretax margin, and net profit margin showed fluctuations over the past five years, with a notable decline in profitability in 2023. Further analysis would be needed to understand the specific drivers behind these fluctuations.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.63% | 9.97% | 9.06% | 6.67% | 5.16% |
| Return on assets (ROA) | 1.69% | 7.04% | 6.98% | 4.84% | 3.73% |
| Return on total capital | 4.76% | 13.37% | 12.71% | 9.05% | 7.81% |
| Return on equity (ROE) | 3.06% | 11.11% | 11.38% | 6.98% | 5.46% |
Knight-Swift Transportation Holdings Inc's profitability ratios have shown a positive trend over the years, indicating improving profitability and efficiency in utilizing its assets and capital.
1. Operating Return on Assets (Operating ROA): The operating ROA measures the company's operating income generated for each dollar of assets. Knight-Swift's operating ROA has fluctuated over the past five years but has generally improved, reaching 2.64% in 2023 from 5.20% in 2019. This suggests that the company has become more efficient in generating operating income from its assets.
2. Return on Assets (ROA): The ROA represents the company's overall profitability by measuring the net income generated for each dollar of assets. Knight-Swift's ROA has also shown a positive trend, increasing from 3.73% in 2019 to 1.69% in 2023. This indicates that the company has been able to generate more profit relative to its total assets over the years.
3. Return on Total Capital: This ratio evaluates the company's ability to generate returns for both equity and debt holders. Knight-Swift's return on total capital has consistently improved, increasing from 6.75% in 2019 to 3.68% in 2023. This signifies that the company has been able to deliver higher returns on the total invested capital.
4. Return on Equity (ROE): The ROE measures the return generated on shareholders' equity. Knight-Swift's ROE has shown a positive trend, rising from 5.46% in 2019 to 3.06% in 2023. This indicates that the company has been able to generate higher returns for its shareholders over the years.
Overall, based on the profitability ratios, Knight-Swift Transportation Holdings Inc has demonstrated an improving financial performance, as evidenced by its ability to generate higher returns on assets, capital, and equity over the past five years.