Knight Transportation Inc (KNX)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	338,153	522,396	706,781	938,529	1,091,828	1,231,541	1,236,187	1,101,524	965,697	818,152	713,526	624,578	564,438	437,322	374,814	381,240	395,420	479,790	483,181	466,216
Revenue (ttm)	US$ in thousands	7,141,770	6,953,470	6,830,370	7,238,520	7,428,580	7,501,820	7,247,420	6,601,990	5,998,010	5,459,110	5,027,080	4,772,080	4,673,870	4,592,720	4,582,830	4,764,210	4,843,950	5,041,780	5,187,870	5,277,470
Operating profit margin		4.73%	7.51%	10.35%	12.97%	14.70%	16.42%	17.06%	16.68%	16.10%	14.99%	14.19%	13.09%	12.08%	9.52%	8.18%	8.00%	8.16%	9.52%	9.31%	8.83%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $338,153K ÷ $7,141,770K
= 4.73%

The operating profit margin of Knight-Swift Transportation Holdings Inc has shown a declining trend over the past eight quarters. In Q4 2022, the operating profit margin was at its highest level of 17.07%, after which it started decreasing steadily. In Q1 2023, there was a noticeable drop to 12.97%, and this decline continued into Q4 2023, where the operating profit margin was the lowest at 4.77% over the period analyzed.

The decreasing trend in operating profit margin indicates that the company's operating expenses may have been increasing at a faster rate than its operating income. This could be a cause for concern as it suggests that the company's profitability per dollar of sales has been decreasing.

It is important for Knight-Swift Transportation Holdings Inc to carefully monitor its operating expenses and find ways to improve operational efficiency in order to reverse the declining trend in operating profit margin and ensure sustainable profitability in the future.