Old Dominion Freight Line Inc (ODFL)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	3,369,560	3,288,590	3,297,910	3,011,120	2,555,300
Payables	US$ in thousands	91,819	112,774	106,275	82,519	68,511
Payables turnover		36.70	29.16	31.03	36.49	37.30

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,369,560K ÷ $91,819K
= 36.70

Old Dominion Freight Line Inc's payables turnover has shown a gradual decline over the years based on the provided data. The payables turnover ratio indicates how many times a company pays off its suppliers during a certain period, reflecting its efficiency in managing its payables.

From December 31, 2020 to December 31, 2024, the payables turnover decreased from 37.30 to 36.70. This downward trend may indicate that the company is taking longer to pay off its suppliers, which could be a sign of potential cash flow constraints or changes in its supplier relationships.

Although the payables turnover ratio decreased over this period, it is still relatively high, suggesting that Old Dominion Freight Line Inc is efficient in managing its payables compared to industry peers. However, management should closely monitor this trend and assess the impact on working capital management and supplier relationships to ensure sustainable operations and financial health.