Knight Transportation Inc (KNX)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	399,017	579,322	756,147	947,435	1,071,516	1,194,771	1,194,034	1,101,001	995,415	857,665	756,374	659,505	576,987	480,095	413,903	415,315	442,437	553,594	594,694	607,929
Long-term debt	US$ in thousands	1,290,020	1,561,710	1,475,200	1,016,260	1,067,670	1,174,010	1,157,620	1,194,160	1,297,550	1,538,020	354,219	414,063	508,907	170,000	365,000	365,000	0	364,766	364,707	364,649
Total stockholders’ equity	US$ in thousands	7,087,390	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	5,666,220	5,603,120	5,530,070	5,542,760
Return on total capital		4.76%	6.68%	8.85%	11.78%	13.37%	14.97%	15.35%	14.18%	12.71%	10.95%	11.75%	10.38%	9.05%	7.94%	6.75%	6.86%	7.81%	9.28%	10.09%	10.29%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 exhibited a declining trend over the past eight quarters. The return on total capital was highest in Q1 2022 at 13.32% and has since decreased steadily to 3.68% in Q4 2023. This declining trend may indicate that the company's ability to generate returns from its total capital employed has weakened over time. It is important for the management of Knight-Swift Transportation Holdings Inc to closely monitor and improve the efficiency of their capital utilization to enhance overall profitability and sustainability in the long term.