Knight Transportation Inc (KNX)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,870,800 | 10,951,700 | 10,655,500 | 8,468,000 | 8,281,730 |
| Total stockholders’ equity | US$ in thousands | 7,087,390 | 6,945,000 | 6,533,150 | 5,869,850 | 5,666,220 |
| Financial leverage ratio | 1.82 | 1.58 | 1.63 | 1.44 | 1.46 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,870,800K ÷ $7,087,390K
= 1.82
The financial leverage ratio of Knight-Swift Transportation Holdings Inc has exhibited fluctuations over the past five years. The ratio increased from 1.46 in 2019 to 1.63 in 2021, indicating a higher level of financial leverage during that period. Subsequently, the ratio decreased to 1.44 in 2020 before rising again to 1.58 in 2022 and further to 1.82 in 2023.
A financial leverage ratio of greater than 1 signifies that the company relies more on debt financing than equity financing to support its operations and growth. The increasing trend observed from 2020 to 2023 may suggest a strategy or need for additional capital infusion through debt to fund investments or expansion initiatives. It is important to monitor the trend of the financial leverage ratio over time as excessive leveraging can lead to increased financial risk and challenges in meeting debt obligations, especially during economic downturns.
Further analysis and consideration of additional financial metrics are recommended to gain a comprehensive understanding of the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2023