Old Dominion Freight Line Inc (ODFL)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,888,710 | 6,263,500 | 5,256,890 | 4,014,390 | 4,103,040 |
| Property, plant and equipment | US$ in thousands | 4,095,400 | 3,687,070 | 3,215,690 | 2,914,030 | 2,968,840 |
| Fixed asset turnover | 1.44 | 1.70 | 1.63 | 1.38 | 1.38 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,888,710K ÷ $4,095,400K
= 1.44
Old Dominion Freight Line, Inc.'s fixed asset turnover has shown fluctuations over the past five years. The company's fixed asset turnover ratio was 1.43 in 2023, indicating that for every dollar invested in fixed assets, the company generated $1.43 in revenue. This represents a decrease from the previous year's ratio of 1.70.
The decreasing trend in fixed asset turnover from 2022 to 2023 may suggest inefficiencies in asset utilization or a decrease in revenue generation relative to the investment in fixed assets. However, it is important to note that the 2023 ratio of 1.43 is still higher than the ratios reported in 2021 and 2020, which were 1.63 and 1.38 respectively.
Overall, Old Dominion Freight Line, Inc. should further investigate the factors contributing to the fluctuations in the fixed asset turnover ratio to determine whether there are opportunities to improve asset utilization and operational efficiency.
Peer comparison
Dec 31, 2023