Knight Transportation Inc (KNX)
Interest coverage
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
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Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 214,026 | 178,939 | 188,376 | 233,618 | 366,862 | 577,927 | 755,046 | 946,706 | 1,071,309 | 1,194,657 | 1,193,911 | 1,101,259 | 968,839 | 836,614 | 732,131 | 624,726 | 573,020 | 486,967 | 411,399 | 429,354 |
Interest expense (ttm) | US$ in thousands | 171,158 | 166,417 | 161,373 | 145,245 | 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 |
Interest coverage | 1.25 | 1.08 | 1.17 | 1.61 | 2.89 | 5.41 | 9.18 | 14.08 | 21.09 | 31.54 | 39.31 | 45.26 | 45.83 | 46.68 | 52.39 | 42.53 | 33.11 | 23.76 | 16.42 | 15.23 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $214,026K ÷ $171,158K
= 1.25
Knight Transportation Inc's interest coverage ratio has exhibited a fluctuating trend over the past few years. Starting at a healthy level of 15.23 in March 2020, the ratio increased steadily, reaching a peak of 52.39 in June 2021. This indicates the company's strong ability to cover its interest expenses with operating income.
After peaking in mid-2021, the interest coverage ratio began to decline gradually, although it remained above 30 until September 2022. However, a more significant drop was observed from December 2022 to March 2024, falling below 10 over this period. This downward trend suggests a potential strain on Knight Transportation's ability to cover its interest obligations with its earnings.
By the end of 2024, the interest coverage ratio had declined to 1.25, indicating a significant decrease in the company's ability to service its debt with its operating income. This could be a cause for concern, as a low interest coverage ratio may signal financial distress and heightened risk for creditors. Knight Transportation Inc may need to closely monitor its financial position and take proactive measures to improve its interest coverage ratio in order to maintain financial stability and meet its debt obligations effectively.
Peer comparison
Dec 31, 2024