Knight Transportation Inc (KNX)

Debt-to-equity 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-equity ratio		0.18	0.15	0.20	0.09	0.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,290,020K ÷ $7,087,390K
= 0.18

The debt-to-equity ratio of Knight-Swift Transportation Holdings Inc has fluctuated over the past five years. In 2023, the ratio increased to 0.30 from 0.21 in 2022, indicating a higher level of debt relative to equity. This suggests that the company may have taken on more debt to finance its operations or growth initiatives.

Compared to 2021 when the ratio was 0.28, the increase in 2023 may signal a shift towards a more leveraged capital structure. However, the current ratio of 0.30 is still lower than in 2020 and 2019 when it stood at 0.12 and 0.13, respectively.

Overall, the upward trend in the debt-to-equity ratio over the past two years warrants further investigation into the company's debt management strategy and financial health. An increasing ratio could indicate a higher financial risk and a potential strain on the company's ability to meet its debt obligations.