Old Dominion Freight Line Inc (ODFL)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	—	—	—	—	—
Receivables turnover	9.57	10.35	8.77	8.84	—
Payables turnover	29.16	31.03	36.49	37.30	37.88
Working capital turnover	9.84	15.51	5.72	4.61	8.19

Based on the activity ratios provided for Old Dominion Freight Line, Inc., we can analyze the company's operational efficiency over the past five years.

1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently the company is able to collect payments from its customers.
- The decreasing trend from 2019 to 2021 indicates that the company took longer to collect payments from customers during these years.
- However, there was a slight improvement in 2022 and 2023, showing that the company managed to collect payments more efficiently during these years.

2. Payables Turnover:
- The payables turnover ratio was consistently reported as 0.00 over the past five years, indicating that there was insufficient data available to calculate this ratio.
- This could suggest that the company does not provide enough information regarding its payment obligations to suppliers or that its payment terms are not standard.

3. Working Capital Turnover:
- The working capital turnover ratio measures how effectively the company utilizes its working capital to generate sales revenue.
- The fluctuating trend over the years indicates variations in the company's ability to efficiently use its working capital to drive revenue.
- The peak in 2019 and 2022 suggests that the company was able to generate a higher level of sales revenue using its working capital during these years.

In summary, Old Dominion Freight Line, Inc. has shown improvements in its receivables turnover and working capital turnover ratios in recent years, indicating enhanced efficiency in collecting payments and utilizing working capital. However, the lack of data for payables turnover prevents a comprehensive analysis of the company's payment practices. Further monitoring and analysis of these ratios can provide insights into the company's operational performance and financial health.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	—	—	—	—
Days of sales outstanding (DSO)	days	38.14	35.26	41.60	41.30	—
Number of days of payables	days	12.52	11.76	10.00	9.79	9.64

Based on the activity ratios provided for Old Dominion Freight Line, Inc., we can analyze the efficiency of the company's operations over the past five years.

1. Days of Inventory on Hand (DOH):
Unfortunately, the data for Days of Inventory on Hand (DOH) is not available for any of the years provided. DOH is a key ratio that measures the average number of days it takes for a company to sell its inventory. Without this information, it is challenging to evaluate how well Old Dominion Freight Line manages its inventory levels.

2. Days of Sales Outstanding (DSO):
The Days of Sales Outstanding (DSO) for Old Dominion Freight Line has shown a fluctuating trend over the past five years. In 2023, DSO improved to 38.29 days compared to 35.28 days in 2022, indicating that the company collected its accounts receivable more quickly. This suggests that the company's credit and collection policies may be effective in ensuring timely payments from customers.

3. Number of Days of Payables:
Similar to DOH, data for the Number of Days of Payables is not available for any of the years mentioned. This ratio typically measures the average number of days it takes for a company to pay its suppliers. Without this information, it is difficult to assess the efficiency of Old Dominion Freight Line's payment practices.

In conclusion, while the Days of Sales Outstanding (DSO) ratio provides some insights into the company's efficiency in collecting receivables, the lack of data for Days of Inventory on Hand (DOH) and Number of Days of Payables hinders a comprehensive analysis of Old Dominion Freight Line's activity ratios.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	1.44	1.70	1.63	1.38	1.38
Total asset turnover	1.07	1.29	1.09	0.92	1.03

Old Dominion Freight Line, Inc.'s long-term activity ratios provide insights into how efficiently the company is utilizing its assets to generate sales over multiple years. The fixed asset turnover ratio has fluctuated over the past five years, ranging from 1.38 in 2019 to 1.70 in 2022. This ratio measures how well the company is utilizing its fixed assets to generate revenue, with a higher ratio indicating more efficient use of fixed assets.

On the other hand, the total asset turnover ratio has also shown variability, with values ranging from 0.92 in 2020 to 1.29 in 2022. This ratio reflects the company's overall ability to generate sales from its total assets, including both fixed and current assets. A higher total asset turnover ratio suggests that the company is effectively using its total assets to drive revenue growth.

Overall, the trend in both the fixed asset turnover and total asset turnover ratios indicates that Old Dominion Freight Line, Inc. has been making improvements in utilizing its assets efficiently to generate sales over the years. However, fluctuations in these ratios highlight the importance of closely monitoring the company's asset management strategies to ensure sustained operational efficiency in the long term.