Knight Transportation Inc (KNX)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 271,917 | 1,020,710 | 974,275 | 559,678 | 413,004 |
| Revenue | US$ in thousands | 7,141,770 | 7,428,580 | 5,998,020 | 4,673,860 | 4,843,950 |
| Pretax margin | 3.81% | 13.74% | 16.24% | 11.97% | 8.53% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $271,917K ÷ $7,141,770K
= 3.81%
The pretax margin of Knight-Swift Transportation Holdings Inc has shown fluctuations over the past five years. In 2023, the pretax margin decreased to 3.78% from 13.74% in 2022, marking a significant decline. This decrease may be attributed to various factors such as changes in operating expenses, revenue fluctuations, or one-time expenses affecting the pre-tax profit.
Comparing the recent pretax margin to the levels in 2021 and 2020, it is evident that there has been a downward trend in profitability since 2021, when the pretax margin was at its highest at 16.25%. The decline continued in 2022 and further in 2023. However, it is worth noting that the pretax margin in 2023 is still higher than that in 2019, indicating an overall improvement in profitability over the longer term.
Overall, the pretax margin of Knight-Swift Transportation Holdings Inc has experienced variability in recent years, reflecting the company's ability to manage its expenses and generate profits before taxes. Management may need to carefully assess the factors contributing to the decrease in pretax margin and implement strategies to improve profitability in the future.
Peer comparison
Dec 31, 2023