Knight Transportation Inc (KNX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 7,108,970 | 7,087,390 | 6,945,000 | 6,533,150 | 5,869,850 |
| ROE | 1.65% | 3.06% | 11.11% | 11.38% | 6.98% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $117,626K ÷ $7,108,970K
= 1.65%
Knight Transportation Inc's return on equity (ROE) has fluctuated over the past five years, starting at 6.98% in 2020 and peaking at 11.38% in 2021. This suggests that the company was able to generate a higher return for its shareholders in 2021 compared to the previous year. However, ROE decreased slightly to 11.11% in 2022 and then dropped significantly to 3.06% in 2023, indicating a potential decline in the company's ability to generate profits relative to its shareholder equity.
By the end of 2024, Knight Transportation's ROE further decreased to 1.65%, reflecting a continued downward trend in the company's profitability and efficiency in utilizing shareholder equity to generate earnings. The decreasing ROE may raise concerns among investors about the company's financial performance and management effectiveness in creating value for shareholders. The company may need to evaluate its financial strategies and operational performance to improve its ROE and enhance shareholder value in the future.
Peer comparison
Dec 31, 2024