Knight Transportation Inc (KNX)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	12,870,800	12,840,300	11,437,900	10,943,000	10,951,700	10,747,400	10,714,900	10,695,800	10,655,500	10,355,000	8,682,460	8,519,480	8,468,000	8,501,360	8,279,030	8,288,320	8,281,730	8,322,220	8,213,580	8,081,140
Operating ROA		2.63%	4.07%	6.18%	8.58%	9.97%	11.46%	11.54%	10.30%	9.06%	7.90%	8.22%	7.33%	6.67%	5.14%	4.53%	4.60%	4.77%	5.77%	5.88%	5.77%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $338,153K ÷ $12,870,800K
= 2.63%

Knight-Swift Transportation Holdings Inc's operating return on assets (operating ROA) has shown a decreasing trend over the past eight quarters, declining from 11.55% in Q2 2022 to 2.64% in Q4 2023. This indicates that the company's ability to generate operating income from its assets has weakened over time. The sharp decrease in operating ROA suggests that the company may be facing challenges in efficiently utilizing its assets to generate profits. Management should closely monitor and address the factors contributing to this declining trend to improve the company's operational efficiency and profitability in the future.