Knight Transportation Inc (KNX)

Interest coverage

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	399,017	579,322	756,147	947,435	1,071,516	1,194,771	1,194,034	1,101,001	995,415	857,665	756,374	659,505	576,987	480,095	413,903	415,315	442,437	553,594	594,694	607,929
Interest expense (ttm)	US$ in thousands	127,100	106,898	82,223	67,214	50,803	37,872	30,372	24,334	21,140	17,921	13,974	14,688	17,309	20,499	25,057	28,192	29,433	31,040	30,778	30,754
Interest coverage		3.14	5.42	9.20	14.10	21.09	31.55	39.31	45.25	47.09	47.86	54.13	44.90	33.33	23.42	16.52	14.73	15.03	17.83	19.32	19.77

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $399,017K ÷ $127,100K
= 3.14

Knight-Swift Transportation Holdings Inc's interest coverage has shown a decreasing trend over the past quarters, indicating a declining ability to cover its interest expenses with its operating income. The interest coverage ratio declined from 47.95 in Q1 2022 to 3.23 in Q4 2023. This downward trend may raise concerns about the company's financial health and its ability to meet its debt obligations. A higher interest coverage ratio is generally preferred as it signifies a stronger ability to meet interest payments. Knight-Swift may need to closely monitor its financial position and consider strategies to improve its interest coverage in the future.