Knight-Swift Transportation Holdings (FRA:KSX) Beneish M-Score : -2.55 (As of May. 04, 2024)

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What is Knight-Swift Transportation Holdings Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Knight-Swift Transportation Holdings's Beneish M-Score or its related term are showing as below:

FRA:KSX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.2 Med: -2.78 Max: 2.72
Current: -2.55

During the past 13 years, the highest Beneish M-Score of Knight-Swift Transportation Holdings was 2.72. The lowest was -3.20. And the median was -2.78.

Knight-Swift Transportation Holdings Beneish M-Score Historical Data

The historical data trend for Knight-Swift Transportation Holdings's Beneish M-Score 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.

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Knight-Swift Transportation Holdings Beneish M-Score Chart

Knight-Swift Transportation Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.91

-2.76

-2.49

-2.79

-2.77

Knight-Swift Transportation Holdings Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.88	-3.20	-2.78	-2.77	-2.55

Competitive Comparison of Knight-Swift Transportation Holdings's Beneish M-Score

For the Trucking subindustry, Knight-Swift Transportation Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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's Beneish M-Score Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Knight-Swift Transportation Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Knight-Swift Transportation Holdings's Beneish M-Score falls into.

Knight-Swift Transportation Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Knight-Swift Transportation Holdings for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.1219

0.528 * 1.4778

0.404 * 0.9711

0.892 * 0.9753

0.115 * 1.0896

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1921

4.679 * -0.061467

0.327 * 1.3055

-2.56

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €864 Mil.
Revenue was 1676.67 + 1771.57 + 1892.68 + 1433.4 = €6,774 Mil.
Gross Profit was 220.503 + 264.45 + 297.498 + 279.525 = €1,062 Mil.
Total Current Assets was €1,410 Mil.
Total Assets was €11,619 Mil.
Property, Plant and Equipment(Net PPE) was €4,619 Mil.
Depreciation, Depletion and Amortization(DDA) was €706 Mil.
Selling, General, & Admin. Expense(SGA) was €578 Mil.
Total Current Liabilities was €1,512 Mil.
Long-Term Debt & Capital Lease Obligation was €2,362 Mil.
Net Income was -2.424 + -9.771 + 56.402 + 58.45 = €103 Mil.
Non Operating Income was 4.609 + 4.226 + 10.713 + 8.934 = €28 Mil.
Cash Flow from Operations was 34.293 + 264.256 + 141.779 + 348 = €788 Mil.

Total Receivables was €790 Mil.
Revenue was 1528.894 + 1645.98 + 1915.807 + 1855.23 = €6,946 Mil.
Gross Profit was 322.393 + 379.611 + 448.154 + 459.005 = €1,609 Mil.
Total Current Assets was €1,347 Mil.
Total Assets was €10,221 Mil.
Property, Plant and Equipment(Net PPE) was €3,809 Mil.
Depreciation, Depletion and Amortization(DDA) was €643 Mil.
Selling, General, & Admin. Expense(SGA) was €497 Mil.
Total Current Liabilities was €846 Mil.
Long-Term Debt & Capital Lease Obligation was €1,764 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(864.345 / 6774.32)	/	(789.915 / 6945.911)
	=	0.127591	/	0.113724
	=	1.1219

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(1609.163 / 6945.911)	/	(1061.976 / 6774.32)
	=	0.231671	/	0.156765
	=	1.4778

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (1409.597 + 4618.538) / 11618.56)	/	(1 - (1347.422 + 3808.889) / 10220.766)
	=	0.481163	/	0.495506
	=	0.9711

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	6774.32	/	6945.911
	=	0.9753

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(642.802 / (642.802 + 3808.889))	/	(705.549 / (705.549 + 4618.538))
	=	0.144395	/	0.13252
	=	1.0896

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(577.878 / 6774.32)	/	(497.022 / 6945.911)
	=	0.085304	/	0.071556
	=	1.1921

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((2361.783 + 1511.83) / 11618.56)	/	((1764.121 + 846.027) / 10220.766)
	=	0.333399	/	0.255377
	=	1.3055

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(102.657 - 28.482	-	788.328)	/	11618.56
	=	-0.061467

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Knight-Swift Transportation Holdings has a M-score of -2.56 suggests that the company is unlikely to be a manipulator.

Knight-Swift Transportation Holdings Beneish M-Score Related Terms

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Knight-Swift Transportation Holdings (FRA:KSX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Knight-Swift Transportation Holdings Inc (FRA:KSX) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

KNX:USA

Address

2002 West Wahalla Lane, Phoenix, AZ, USA, 85027

Website

https://www.knight-swift.com

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.

Knight-Swift Transportation Holdings (FRA:KSX) Headlines

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