Old Dominion Freight Line Inc (ODFL)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		11.02	10.30	9.90	9.77	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
DSO	days	33.12	35.44	36.86	37.35	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

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.02
= 33.12

Old Dominion Freight Line Inc's Days Sales Outstanding (DSO) is a metric used to evaluate the average number of days it takes for the company to collect revenue after making a sale.

Analyzing the trend of DSO over the past few years, we can see fluctuations in the time it takes for Old Dominion Freight Line Inc to collect its accounts receivable.

From March 31, 2020, to December 31, 2024, the DSO figures ranged from a low of 33.12 days to a high of 48.54 days. Notably, the DSO peaked at 48.54 days on June 30, 2021, indicating a longer collection period, which may raise concerns about the company's efficiency in collecting revenue.

However, there has been a general decreasing trend in DSO from the end of 2021 to December 31, 2024, reaching a low of 33.12 days. This trend suggests that the company has been improving its collection process, potentially resulting in a more efficient cash conversion cycle and better working capital management.

Overall, monitoring DSO is crucial for assessing Old Dominion Freight Line Inc's ability to collect receivables promptly and manage its cash flow effectively. A lower DSO signifies faster collections and better liquidity, while a higher DSO may indicate potential issues with customer credit or collection practices.