Knight Transportation Inc (KNX)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	320,204	397,389	1,071,310	995,775	577,620
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	7,108,970	7,087,390	6,945,000	6,533,150	5,869,850
Return on total capital		4.50%	5.61%	15.43%	15.24%	9.84%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $320,204K ÷ ($—K + $7,108,970K)
= 4.50%

Based on the data provided, Knight Transportation Inc's return on total capital has fluctuated over the past five years. In December 2020, the return on total capital was 9.84%, indicating that for every dollar of total capital invested, the company generated a return of 9.84 cents.

There was an improvement in performance by December 2021, with the return on total capital increasing to 15.24%. This suggests that the company was able to generate a higher return on its total capital compared to the previous year.

By December 2022, Knight Transportation Inc's return on total capital further increased to 15.43%, indicating continued efficiency in utilizing its capital resources effectively to generate returns for shareholders.

However, in December 2023, there was a decline in the return on total capital to 5.61%, which could signal potential challenges in generating returns on the capital invested during that period.

The trend continued into December 2024, with the return on total capital decreasing further to 4.50%, highlighting a potential decrease in the company's efficiency in utilizing capital to generate returns.

Overall, Knight Transportation Inc's return on total capital has shown variability over the five-year period, with fluctuations in performance that may require further analysis to understand the factors influencing these changes.