The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Knight-Swift Transportation Holdings's current ratio for the quarter that ended in Dec. 2023 was 0.94.
Knight-Swift Transportation Holdings has a current ratio of 0.94. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Knight-Swift Transportation Holdings has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Knight-Swift Transportation Holdings's Current Ratio or its related term are showing as below:
KNX'
s Current Ratio Range Over the Past 10 Years
Min: 0.9 Med: 1.5 Max: 3.05
Current: 0.94
During the past 13 years, Knight-Swift Transportation Holdings's highest Current Ratio was 3.05. The lowest was 0.90. And the median was 1.50.
KNX's Current Ratio is ranked worse than 74.31% of 981
companies
in the Transportation industry
Industry Median: 1.4
vs KNX: 0.94
Knight-Swift Transportation Holdings Current Ratio Historical Data
The historical data trend for Knight-Swift Transportation Holdings's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Trucking subindustry, Knight-Swift Transportation Holdings's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Knight-Swift Transportation Holdings Current Ratio Distribution
For the Transportation industry and Industrials sector, Knight-Swift Transportation Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Knight-Swift Transportation Holdings's Current Ratio falls into.
Knight-Swift Transportation Holdings Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Knight-Swift Transportation Holdings's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Knight-Swift Transportation Holdings (NYSE:KNX) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Knight-Swift Transportation Holdings Current Ratio Related Terms
Thank you for viewing the detailed overview of Knight-Swift Transportation Holdings's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Knight-Swift Transportation Holdings (Knight-Swift Transportation Holdings) Business Description
Knight-Swift is the largest truckload, or TL, carrier in the U.S., with a diversified transportation offering. Pro forma for the U.S. Xpress deal, 74% of revenue derives from Knight's asset-based trucking business, with full-truckload (for-hire dry van, refrigerated, and dedicated contract) making up 63% and LTL at 11%. Truck brokerage and other asset-light logistics services make up 14% of revenue, with intermodal near 6%. Knight's intermodal operations use the Class-I railroads for the underlying movement of its shipping containers and also include drayage (regional trucking services to and from inland intermodal ramps/terminals). The remainder of revenue (6%) reflects services offered to shippers and third-party truckers including insurance, equipment maintenance, and equipment leasing.
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