Knight Transportation Inc (KNX)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 117,626 | 217,149 | 771,325 | 743,388 | 410,002 |
| Total assets | US$ in thousands | 12,698,500 | 12,870,800 | 10,951,700 | 10,655,500 | 8,468,000 |
| ROA | 0.93% | 1.69% | 7.04% | 6.98% | 4.84% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $117,626K ÷ $12,698,500K
= 0.93%
Knight Transportation Inc's return on assets (ROA) has shown fluctuating trends over the past five years. The ROA increased steadily from 4.84% in December 2020 to 7.04% in December 2022, indicating improved efficiency in generating profits relative to its asset base. However, there was a significant decline in ROA to 1.69% in December 2023 and a further drop to 0.93% in December 2024.
The decreasing trend in ROA in the last two years may indicate challenges in utilizing assets effectively to generate profits. It is essential for the company to analyze the reasons behind this decline and implement strategies to optimize asset utilization in order to improve its overall financial performance. Monitoring and addressing the factors impacting ROA will be crucial for Knight Transportation Inc to enhance its profitability and operational efficiency in the future.
Peer comparison
Dec 31, 2024