Knight Transportation Inc (KNX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.79 | 1.82 | 1.58 | 1.63 | 1.44 |
Based on the solvency ratios provided for Knight Transportation Inc, it is evident that the company has maintained a strong financial position in terms of debt management over the past five years.
1. Debt-to-assets ratio: Knight Transportation Inc has consistently maintained a debt-to-assets ratio of 0.00 over the period from December 31, 2020, to December 31, 2024. This indicates that the company has not relied heavily on debt to finance its assets, which is a positive sign for solvency.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has remained at 0.00 for the same period. This ratio also suggests that Knight Transportation Inc has not been highly leveraged in terms of capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio has also consistently been at 0.00 from December 31, 2020, to December 31, 2024. This implies that the company has not been heavily reliant on debt financing in relation to shareholder equity.
4. Financial leverage ratio: The financial leverage ratio, which gives an indication of the company's use of debt in its capital structure, has shown a slight increase from 1.44 in 2020 to 1.79 in 2024. While this shows a bit of leverage increase, the overall ratio remains at a moderate level, indicating that the company has maintained a balanced approach to debt management.
In conclusion, based on the solvency ratios analyzed, Knight Transportation Inc appears to have a strong and stable financial position with minimal reliance on debt for its operations, which is a positive indicator of solvency and financial health.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.87 | 3.13 | 21.09 | 47.10 | 33.37 |
The interest coverage ratio for Knight Transportation Inc has shown fluctuating trends over the years. As of December 31, 2020, the company had a robust interest coverage ratio of 33.37, indicating its ability to cover its interest expenses comfortably. This ratio improved further by December 31, 2021, reaching a healthier level of 47.10, which suggests a substantial increase in the company's ability to meet its interest obligations.
However, there was a significant decline in the interest coverage ratio by December 31, 2022, falling to 21.09. This decrease may raise concerns about the company's ability to cover its interest expenses adequately. The downward trend continued in the following years with the ratio dropping to 3.13 by December 31, 2023, and further to 1.87 by December 31, 2024.
The declining trend in the interest coverage ratio raises concerns about Knight Transportation Inc's financial health and its ability to service its debt obligations. It is essential for the company to closely monitor its interest coverage ratio and take necessary steps to improve it to avoid potential financial distress.