Knight Transportation Inc (KNX)

Solvency ratios

	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
Debt-to-assets ratio	0.10	0.12	0.13	0.09	0.10	0.11	0.11	0.11	0.12	0.15	0.04	0.05	0.06	0.02	0.04	0.04	0.00	0.04	0.04	0.05
Debt-to-capital ratio	0.15	0.18	0.17	0.13	0.13	0.15	0.15	0.15	0.17	0.20	0.06	0.07	0.08	0.03	0.06	0.06	0.00	0.06	0.06	0.06
Debt-to-equity ratio	0.18	0.22	0.21	0.14	0.15	0.17	0.17	0.18	0.20	0.24	0.06	0.07	0.09	0.03	0.06	0.06	0.00	0.07	0.07	0.07
Financial leverage ratio	1.82	1.81	1.62	1.56	1.58	1.58	1.62	1.63	1.63	1.65	1.43	1.44	1.44	1.45	1.44	1.46	1.46	1.49	1.49	1.46

Knight-Swift Transportation Holdings Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and manage its capital structure effectively. Here is a detailed analysis based on the data provided:

1. Debt-to-assets ratio: Knight-Swift's debt-to-assets ratio has been relatively stable around 0.14 to 0.18 over the past eight quarters. This ratio indicates that, on average, 14% to 18% of the company's total assets are financed by debt. A lower debt-to-assets ratio suggests lower financial risk, as a higher proportion of assets are funded by equity rather than debt.

2. Debt-to-capital ratio: The debt-to-capital ratio for Knight-Swift has ranged from 0.17 to 0.25 over the same period. This ratio reflects the proportion of the company's capital structure that is financed by debt, with 17% to 25% of capital coming from debt. A decreasing trend in this ratio may indicate a shift towards a more conservative capital structure.

3. Debt-to-equity ratio: Knight-Swift's debt-to-equity ratio ranges from 0.20 to 0.33, showing the relationship between its total debt and equity. A lower debt-to-equity ratio indicates a lower level of financial risk and suggests that the company relies less on debt financing, which can be seen as a positive sign by investors and creditors.

4. Financial leverage ratio: The financial leverage ratio, which measures the company's reliance on debt to finance its assets, has been steady around 1.56 to 1.82. A higher ratio indicates higher financial leverage and potential financial risk. Knight-Swift's consistent financial leverage ratio suggests a balanced approach to its capital structure.

Overall, Knight-Swift Transportation Holdings Inc's solvency ratios show a stable and balanced capital structure with moderate levels of debt financing. The company's consistent performance in managing its solvency ratios reflects its ability to meet long-term obligations while maintaining a relatively low level of financial risk.

Coverage ratios

	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
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

Knight-Swift Transportation Holdings Inc's interest coverage has shown a decreasing trend over the past eight quarters. The interest coverage ratio, which measures the company's ability to meet its interest obligations, has decreased from 47.95 in Q1 2022 to 3.23 in Q4 2023. This indicates a declining ability of the company to cover its interest expenses with its earnings.

A high interest coverage ratio is generally considered favorable as it suggests that the company is generating more than enough earnings to cover its interest payments. Conversely, a decreasing interest coverage ratio may signal financial distress or increased financial risk for the company.

The significant decrease in Knight-Swift Transportation Holdings Inc's interest coverage ratio over the quarters raises concerns about the company's ability to service its debt obligations from its operating income. It is important for investors and stakeholders to closely monitor this trend and assess the company's overall financial health and sustainability.