Knight Transportation Inc (KNX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,074,700 | 13,259,900 | 11,137,400 | 10,815,000 | 8,620,770 |
| Total stockholders’ equity | US$ in thousands | 7,108,970 | 7,087,390 | 6,945,000 | 6,533,150 | 5,869,850 |
| Financial leverage ratio | 1.84 | 1.87 | 1.60 | 1.66 | 1.47 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,074,700K ÷ $7,108,970K
= 1.84
The financial leverage ratio of Knight Transportation Inc has shown a gradual increase from 1.44 as of December 31, 2020, to 1.79 as of December 31, 2024, with fluctuations in between. This indicates that the company has been relying more on debt financing relative to equity over the years. While an increasing leverage ratio can enhance profitability through magnified returns, it also heightens financial risk due to increased debt obligations and interest payments. Thus, it is essential for stakeholders to closely monitor the company's debt management and liquidity positions to ensure sustainable growth and stability in the long term.
Peer comparison
Dec 31, 2024