Knight Transportation Inc (KNX)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 399,017 | 1,071,520 | 995,415 | 576,987 | 442,437 |
| Interest expense | US$ in thousands | 127,100 | 50,803 | 21,140 | 17,309 | 29,433 |
| Interest coverage | 3.14 | 21.09 | 47.09 | 33.33 | 15.03 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $399,017K ÷ $127,100K
= 3.14
The interest coverage ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
In the case of Knight-Swift Transportation Holdings Inc:
- In 2023, the interest coverage ratio was 3.23, indicating that the company's EBIT was able to cover its interest expenses 3.23 times over. This ratio has decreased significantly compared to the previous year.
- In 2022, the interest coverage ratio was 24.09, suggesting a strong ability to cover interest payments with EBIT.
- In 2021, the interest coverage ratio was 48.38, showing a very robust ability to meet interest obligations based on EBIT.
- In 2020, the interest coverage ratio was 37.04, indicating a high level of coverage for interest expenses.
- In 2019, the interest coverage ratio was 16.83, showing a good ability to cover interest payments with EBIT.
Overall, Knight-Swift Transportation Holdings Inc's interest coverage has exhibited some fluctuations in recent years, with a significant decrease in 2023 compared to the previous year. It is important to further investigate the reasons behind this decline to assess the company's financial health and ability to service its debt obligations.
Peer comparison
Dec 31, 2023