Knight Transportation Inc (KNX)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 117,626 37,474 67,204 110,230 217,149 376,505 511,106 667,272 771,325 877,240 888,623 821,935 743,388 631,101 546,981 474,366 410,002 335,117 287,678 286,694
Total stockholders’ equity US$ in thousands 7,108,970 7,058,700 7,053,960 7,056,150 7,085,780 7,113,500 7,070,280 7,024,910 6,945,000 6,806,420 6,621,060 6,570,690 6,533,150 6,292,660 6,085,260 5,936,840 5,869,850 5,879,020 5,763,460 5,688,060
ROE 1.65% 0.53% 0.95% 1.56% 3.06% 5.29% 7.23% 9.50% 11.11% 12.89% 13.42% 12.51% 11.38% 10.03% 8.99% 7.99% 6.98% 5.70% 4.99% 5.04%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $117,626K ÷ $7,108,970K
= 1.65%

Knight Transportation Inc's Return on Equity (ROE) has shown a fluctuating trend over the analyzed period. The ROE stood at around 5% in early 2020, gradually increasing to above 10% by the end of 2021. However, there was a decline in ROE in the following periods, dropping to around 1.5% by mid-2024.

This fluctuation in ROE indicates changes in the company's profitability relative to its shareholders' equity. Knight Transportation Inc experienced a significant improvement in ROE from 2020 to 2021, indicating enhanced efficiency in generating profits with the available equity.

However, the subsequent declining trend from 2022 to 2024 suggests challenges in sustaining the earlier high levels of profitability or managing the equity structure efficiently. It is essential for the company to analyze the underlying factors influencing ROE to implement strategic measures for improving financial performance and maximizing returns for its shareholders.