Old Dominion Freight Line Inc (ODFL)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		11.03	9.57	10.35	8.77	8.84
DSO	days	33.10	38.14	35.26	41.60	41.30

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.03
= 33.10

Old Dominion Freight Line Inc's Days of Sales Outstanding (DSO) has shown a relatively stable trend over the past five years. As of December 31, 2020, the DSO stood at 41.30 days, increasing slightly to 41.60 days by the end of December 31, 2021. However, there was a notable improvement in DSO performance in the subsequent years, with a decrease to 35.26 days by December 31, 2022, and further improvement to 38.14 days by December 31, 2023. The most significant reduction was observed by December 31, 2024, with DSO declining to 33.10 days.

Overall, the downward trend in DSO indicates that Old Dominion Freight Line Inc has been able to collect its accounts receivable more efficiently over the years, which can be a positive sign of effective credit management and liquidity. The company's ability to convert sales into cash quicker suggests a healthier working capital position and could also indicate improved customer credit policies or a more efficient collection process.