Old Dominion Freight Line Inc (ODFL)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	5,885,610	5,867,450	5,955,860	6,210,120	6,262,120	6,180,360	5,976,720	5,628,680	5,256,110	4,918,280	4,576,400	4,153,200	4,014,576	3,950,876	3,941,166	4,105,626	4,108,645	4,126,375	4,136,145	4,108,975
Property, plant and equipment	US$ in thousands	4,095,400	4,085,410	4,001,100	3,841,460	3,687,070	3,491,510	3,378,730	3,225,310	3,215,690	3,110,110	2,998,730	2,907,670	2,914,030	2,935,480	2,955,080	2,953,990	2,968,840	2,927,890	2,858,170	2,761,860
Fixed asset turnover		1.44	1.44	1.49	1.62	1.70	1.77	1.77	1.75	1.63	1.58	1.53	1.43	1.38	1.35	1.33	1.39	1.38	1.41	1.45	1.49

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,885,610K ÷ $4,095,400K
= 1.44

Old Dominion Freight Line, Inc. has exhibited relatively consistent fixed asset turnover ratios over the past eight quarters. The fixed asset turnover ratio measures how efficiently the company is generating revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets effectively to generate sales.

In the most recent quarter (Q4 2023), the fixed asset turnover ratio was 1.43, remaining stable compared to the previous quarter. This suggests that for every dollar invested in fixed assets, the company generated $1.43 in revenue.

Looking at the trend over the quarters, the fixed asset turnover ratio has shown a slight decline from 1.70 in Q4 2022 to 1.43 in Q4 2023. This could be an indicator that the company's efficiency in utilizing its fixed assets to generate revenue has decreased slightly over the past year.

Overall, while the fixed asset turnover ratio for Old Dominion Freight Line, Inc. has been relatively steady, it is essential for the company to continue monitoring and optimizing its utilization of fixed assets to ensure efficient operations and maximize revenues.