Old Dominion Freight Line Inc (ODFL)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		9.57	8.84	10.47	10.71	10.35	9.45	8.52	8.26	8.77	7.52	7.63	8.21	8.84	8.53	9.96	9.60	—	9.42	9.03	9.02
DSO	days	38.16	41.29	34.86	34.08	35.27	38.61	42.83	44.19	41.60	48.54	47.86	44.44	41.30	42.77	36.65	38.02	—	38.75	40.43	40.45

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.57
= 38.16

To analyze the days of sales outstanding (DSO) trend for Old Dominion Freight Line, Inc., we observe fluctuations in DSO over the past eight quarters. DSO represents the average number of days it takes for the company to collect payments from its customers.

From Q1 2022 to Q3 2023, the DSO ranged from 34.11 days to 42.84 days, indicating variability in the company's collection cycle. Notably, the DSO decreased in Q2 and Q3 of 2023 compared to the previous quarters, implying an improvement in the efficiency of receivables collection.

It is important to note that a low DSO value signifies a shorter collection period and better liquidity, while a high DSO may indicate potential issues in collecting receivables promptly. The decreasing trend in DSO over the past two quarters suggests that Old Dominion Freight Line, Inc. has been more effective in managing its accounts receivable and collecting payments from customers in a timely manner.

Further monitoring of the DSO trend will be essential to assess whether the company can sustain this positive trajectory in receivables management, which ultimately impacts its cash flow and working capital efficiency.