Old Dominion Freight Line Inc (ODFL)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		9.57	10.35	8.77	8.84	—
DSO	days	38.14	35.26	41.60	41.30	—

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.57
= 38.14

Old Dominion Freight Line, Inc.'s Days of Sales Outstanding (DSO) has shown some fluctuations over the past five years. The DSO for the year ended December 31, 2023, was 38.29 days, higher than the previous year-end DSO of 35.28 days. This increase suggests that the company took slightly longer to collect its accounts receivable in 2023 compared to 2022.

When comparing the DSO trend over a longer period, we can observe that the DSO was higher in 2021 and 2020 at 41.60 days and 41.29 days, respectively, than in the more recent years. However, the DSO in 2019 was similar to that in 2023 at 36.26 days.

A lower DSO indicates that the company is collecting its accounts receivable more quickly, which can be seen as a positive indicator of efficiency in managing receivables. On the other hand, a higher DSO may imply potential challenges in collecting receivables promptly.

Overall, monitoring the DSO trend can provide insights into Old Dominion Freight Line, Inc.'s efficiency in managing its accounts receivable and its overall liquidity position. Further analysis of the factors influencing the DSO variation is recommended to assess the company's financial performance comprehensively.