Old Dominion Freight Line Inc (ODFL)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	3,369,558	3,381,069	3,360,287	3,314,770	3,288,590	3,235,823	3,231,666	3,281,089	3,297,909	3,295,094	3,261,416	3,157,676	3,011,118	2,874,575	2,740,297	2,580,059	2,555,302	2,576,973	2,587,105	2,657,508
Payables	US$ in thousands	91,819	99,279	112,606	97,689	112,774	115,712	96,661	119,773	106,275	120,160	136,480	117,850	82,519	135,044	90,956	88,452	68,511	59,229	51,257	55,097
Payables turnover		36.70	34.06	29.84	33.93	29.16	27.96	33.43	27.39	31.03	27.42	23.90	26.79	36.49	21.29	30.13	29.17	37.30	43.51	50.47	48.23

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,369,558K ÷ $91,819K
= 36.70

The payables turnover ratio for Old Dominion Freight Line Inc has experienced fluctuations over the reporting periods provided. The ratio measures how efficiently the company manages its payables by comparing the cost of goods sold to the average accounts payable balance.

Old Dominion Freight Line Inc's payables turnover ratio ranged from a high of 50.47 in June 2020 to a low of 21.29 in September 2021. The ratio improved after the September 2021 low, reaching 34.06 by September 2024.

A high payables turnover ratio indicates that the company is paying its suppliers quickly, which can be favorable for maintaining good relationships with suppliers. On the other hand, a low ratio may suggest that the company is taking longer to pay its bills, potentially signaling liquidity or cash flow issues.

Overall, Old Dominion Freight Line Inc's payables turnover ratio trended positively towards the end of the period, indicating that the company made improvements in managing its payables efficiently. It is essential for investors and analysts to monitor this ratio alongside other financial metrics to gain a comprehensive understanding of the company's financial performance and operational efficiency.