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.