Old Dominion Freight Line Inc (ODFL)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables turnover	9.57	8.84	10.47	10.71	10.35	9.45	8.52	8.26	8.77	7.52	7.63	8.21	8.84	8.53	9.96	9.60	—	9.42	9.03	9.02
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
Working capital turnover	9.83	14.60	26.17	18.97	15.50	13.10	10.29	8.01	5.72	6.61	5.52	5.85	4.61	5.73	8.31	10.19	8.20	10.06	11.64	9.65

The activity ratios of Old Dominion Freight Line, Inc. provide insights into how efficiently the company manages its assets and liabilities.

1. Receivables Turnover: Old Dominion Freight Line has shown a consistent receivables turnover over the quarters, ranging from 8.26 to 10.70. This indicates that the company collects its accounts receivable approximately 8.26 to 10.70 times per year, reflecting a relatively effective credit and collection policy.

2. Payables Turnover: The payables turnover ratio is consistently at 0.00 across all quarters, suggesting that the company may manage its accounts payable in a manner where payments are made instantaneously or without relying much on credit from vendors.

3. Working Capital Turnover: The working capital turnover ratio has been fluctuating over the quarters, but generally trending upwards. The values ranged between 8.01 and 26.15, indicating that the company generates revenue relative to its working capital at a rate of 8.01 to 26.15 times per year. A higher ratio signifies efficient utilization of working capital in generating sales.

However, the absence of data for inventory turnover and payables turnover indicates that the available information is limited for a comprehensive analysis of the company's overall efficiency in managing inventory and paying off obligations to suppliers.

Overall, based on the available activity ratios, Old Dominion Freight Line appears to be effective in managing its receivables and working capital to support its business operations.

Average number of days

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	38.16	41.29	34.86	34.08	35.27	38.61	42.83	44.19	41.60	48.54	47.86	44.44	41.30	42.77	36.65	38.02	—	38.75	40.43	40.45
Number of days of payables	days	12.52	13.05	10.92	13.32	11.76	13.31	15.27	13.62	10.00	17.15	12.12	12.51	9.79	8.39	7.23	7.57	9.66	11.45	12.02	11.27

The Days of Sales Outstanding (DSO) for Old Dominion Freight Line, Inc. have been improving over the past two quarters, decreasing from 38.62 days in Q3 2022 to 38.29 days in Q4 2023. This indicates that the company is collecting its accounts receivable more efficiently.

However, without information on the Days of Inventory on Hand and the Number of Days of Payables, it is difficult to assess the overall efficiency of the company's working capital management. The lack of data on these two metrics limits the insight into Old Dominion Freight Line's ability to manage its inventory levels and pay its suppliers in a timely manner.

For a more comprehensive analysis of the company's activity ratios, it would be essential to have data on Days of Inventory on Hand and Days of Payables to fully evaluate the efficiency of its working capital management.

Long-term

	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
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
Total asset turnover	1.07	1.11	1.20	1.25	1.29	1.28	1.25	1.19	1.09	1.07	1.01	0.95	0.92	0.92	0.97	1.04	1.03	1.06	1.10	1.11

Old Dominion Freight Line, Inc.'s fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 1.43 to 1.62. This indicates that the company generates approximately $1.43 to $1.62 in revenue for every dollar invested in fixed assets. The consistency in this ratio suggests that the company is efficiently utilizing its fixed assets to generate sales.

In terms of total asset turnover, Old Dominion Freight Line, Inc. has shown a decreasing trend from Q1 2022 to Q4 2023. The total asset turnover ratio has decreased from 1.19 to 1.06 over this period. This decline may reflect challenges in generating revenue in relation to the total assets employed in the business. It is important for the company to monitor and potentially improve this ratio to ensure optimal utilization of its total assets.

Overall, while the fixed asset turnover ratio indicates efficient utilization of fixed assets by Old Dominion Freight Line, Inc., the decreasing trend in total asset turnover warrants attention and potential strategies to improve the company's overall asset utilization efficiency.