Knight Transportation Inc (KNX)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.15 | 0.13 | 0.17 | 0.08 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,290,020K ÷ ($1,290,020K + $7,087,390K)
= 0.15
The debt-to-capital ratio of Knight-Swift Transportation Holdings Inc has fluctuated over the past five years, ranging from 0.11 to 0.23. In 2023, the ratio increased to 0.23, indicating that the company's level of debt relative to its total capital increased compared to the previous year. This suggests that a higher proportion of Knight-Swift Transportation Holdings Inc's capital structure is funded by debt rather than equity in 2023.
Comparing the ratio to earlier years, it is higher than the ratios in 2021 and 2020 but still within a reasonable range. In 2022, the ratio was lower at 0.18, showing that the company had a lower level of debt relative to its capital that year. Notably, in both 2020 and 2019, the ratio was at 0.11, indicating a consistently low debt-to-capital ratio during those years.
Overall, the increasing trend in the debt-to-capital ratio from 2022 to 2023 may suggest that Knight-Swift Transportation Holdings Inc is taking on more debt to fund its operations or growth initiatives. It is essential for investors and stakeholders to monitor this ratio over time to assess the company's financial leverage and risk profile.
Peer comparison
Dec 31, 2023