Old Dominion Freight Line Inc (ODFL)

Payables 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
Cost of revenue (ttm)	US$ in thousands	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	2,653,734	2,590,555	2,585,784	2,570,602
Payables	US$ in thousands	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	70,254	81,269	85,125	79,397
Payables turnover		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	37.77	31.88	30.38	32.38

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,288,590K ÷ $112,774K
= 29.16

The payables turnover ratio for Old Dominion Freight Line, Inc. for each of the quarters in 2022 and 2023 has been consistently reported as 0.00. A payables turnover ratio of 0.00 indicates that the company is not effectively managing its accounts payable. This could be due to various reasons such as extended payment terms negotiated with suppliers or inefficiencies in the company's payables management processes.

In general, a low or decreasing payables turnover ratio could suggest that the company is taking longer to pay off its suppliers, which may strain supplier relationships and potentially impact the company's access to credit or discounts. It is important for Old Dominion Freight Line, Inc. to analyze the factors contributing to this low ratio and take steps to improve their payables management for better financial health and operational efficiency.