Knight Transportation Inc (KNX)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	214,026	178,939	188,376	233,618	366,862	577,927	755,046	946,706	1,071,309	1,194,657	1,193,911	1,101,259	968,839	836,614	732,131	624,726	573,020	486,967	411,399	429,354
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		3.01%	2.54%	2.67%	3.31%	5.18%	8.12%	10.68%	13.48%	15.43%	17.55%	18.03%	16.76%	14.83%	13.30%	12.03%	10.52%	9.76%	8.28%	7.14%	7.55%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $214,026K ÷ ($—K + $7,108,970K)
= 3.01%

Knight Transportation Inc's Return on Total Capital has shown a fluctuating trend over the past few years. Starting at 7.55% in March 2020, it steadily increased to 18.03% by June 2022, indicating improved efficiency in generating earnings relative to the total capital employed. However, from September 2022 onwards, the ratio started to decline, reaching 2.54% by September 2024. This downward trend suggests a potential decrease in the company's ability to generate returns on the total capital invested, which could be a concerning sign for investors and stakeholders. Further analysis of the company's financial performance and capital management may be necessary to address these fluctuations and optimize returns in the future.