Knight Transportation Inc (KNX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.96% | 17.56% | 23.89% | 23.55% | 20.73% |
| Operating profit margin | 3.28% | 4.73% | 5.55% | 6.97% | 1.63% |
| Pretax margin | 2.01% | 3.78% | 13.74% | 16.25% | 11.99% |
| Net profit margin | 1.59% | 3.04% | 10.38% | 12.39% | 8.77% |
Knight Transportation Inc's profitability ratios have shown varying trends over the past five years.
1. Gross Profit Margin: The company's gross profit margin has generally increased from 20.73% in 2020 to 23.55% in 2021 and further to 23.89% in 2022. However, there was a significant decline in 2023 to 17.56% and a further drop to 13.96% in 2024, indicating a decrease in the percentage of revenue retained after accounting for direct costs.
2. Operating Profit Margin: Knight Transportation Inc's operating profit margin has demonstrated some volatility, starting at 1.63% in 2020 and rising to 6.97% in 2021. However, the margin decreased to 5.55% in 2022, 4.73% in 2023, and 3.28% in 2024, showing a decreasing trend in profitability from operations over the years.
3. Pretax Margin: The pretax margin of the company was relatively stable at 11.99% in 2020, 16.25% in 2021, and 13.74% in 2022. However, there was a sharp decline to 3.78% in 2023 and a significant drop to 2.01% in 2024, indicating a substantial decrease in profitability before accounting for taxes.
4. Net Profit Margin: Knight Transportation Inc's net profit margin has followed a similar downward trend, starting at 8.77% in 2020 and increasing to 12.39% in 2021. However, the margin decreased to 10.38% in 2022, 3.04% in 2023, and 1.59% in 2024, reflecting a decreasing trend in the percentage of revenue retained as net income.
Overall, Knight Transportation Inc's profitability has shown some inconsistency in recent years, with fluctuations in gross, operating, pretax, and net profit margins. It is essential for the company to closely monitor and address these trends to maintain sustainable profitability levels in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.92% | 2.63% | 3.76% | 3.92% | 0.90% |
| Return on assets (ROA) | 0.93% | 1.69% | 7.04% | 6.98% | 4.84% |
| Return on total capital | 4.50% | 5.61% | 15.43% | 15.24% | 9.84% |
| Return on equity (ROE) | 1.65% | 3.06% | 11.11% | 11.38% | 6.98% |
Knight Transportation Inc's profitability ratios exhibited varying trends over the five-year period from 2020 to 2024.
1. Operating Return on Assets (Operating ROA):
- Knight Transportation's Operating ROA increased from 0.90% in 2020 to 3.92% in 2021, indicating improved operational efficiency.
- It slightly decreased to 3.76% in 2022 but remained relatively stable.
- However, the ratio declined to 2.63% in 2023 and further to 1.92% in 2024, possibly signaling challenges in generating operating profits relative to its assets.
2. Return on Assets (ROA):
- The company's ROA showed a positive trend from 4.84% in 2020 to 6.98% in 2021 and further to 7.04% in 2022, reflecting growing profitability in relation to its total assets.
- However, there was a notable decline in 2023 to 1.69% and a further decrease to 0.93% in 2024, indicating a potential decrease in the efficiency of asset utilization and overall profitability.
3. Return on Total Capital:
- Knight Transportation's Return on Total Capital increased from 9.84% in 2020 to 15.24% in 2021 and slightly rose to 15.43% in 2022, demonstrating improved returns in relation to the total capital employed.
- However, the ratio declined in the following years, reaching 5.61% in 2023 and 4.50% in 2024, possibly indicating challenges in generating returns compared to the total capital invested.
4. Return on Equity (ROE):
- The ROE of Knight Transportation increased from 6.98% in 2020 to 11.38% in 2021, showing enhanced profitability relative to shareholders' equity.
- However, the ratio declined in the subsequent years to 11.11% in 2022, 3.06% in 2023, and 1.65% in 2024, suggesting decreasing returns for the company's equity holders.
In summary, while Knight Transportation Inc showed positive trends in some profitability ratios during the period under review, there were signs of declining profitability in the later years, particularly in ROA and ROE. It is important for the company to evaluate and address the factors contributing to these fluctuations in order to sustain and improve its overall profitability in the future.