Knight Transportation Inc (KNX)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 399,017 | 1,071,520 | 995,415 | 576,987 | 442,437 |
| Long-term debt | US$ in thousands | 1,290,020 | 1,067,670 | 1,297,550 | 508,907 | 0 |
| Total stockholders’ equity | US$ in thousands | 7,087,390 | 6,945,000 | 6,533,150 | 5,869,850 | 5,666,220 |
| Return on total capital | 4.76% | 13.37% | 12.71% | 9.05% | 7.81% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $399,017K ÷ ($1,290,020K + $7,087,390K)
= 4.76%
Knight-Swift Transportation Holdings Inc's return on total capital has shown a declining trend over the past five years. In 2023, the return on total capital dropped to 3.68% from its peak of 12.96% in 2022. This significant decrease is a cause for concern as it indicates a decrease in the company's ability to generate returns on its total invested capital. Compared to the previous years, the return on total capital in 2023 is significantly lower, highlighting potential inefficiencies in capital utilization or lower profitability. Further analysis into the factors contributing to this decline is recommended to address potential challenges and improve the company's financial performance.
Peer comparison
Dec 31, 2023