Old Dominion Freight Line Inc (ODFL)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 11.02 | 10.30 | 9.90 | 9.77 | 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 |
| 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 |
| Working capital turnover | 32.28 | 32.73 | 23.53 | 8.27 | 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 |
Activity ratios provide insight into how efficiently a company is managing its assets to generate sales. Let's analyze the activity ratios of Old Dominion Freight Line Inc based on the provided data:
1. Receivables Turnover: This ratio indicates how many times a company collects its accounts receivable during a period. Old Dominion Freight Line Inc's receivables turnover has shown a fluctuating trend over the periods, with an average of around 9 times per year. The company has been able to maintain a steady pace in collecting its outstanding receivables.
2. Payables Turnover: The payables turnover ratio measures how many times a company pays its suppliers during a period. Old Dominion Freight Line Inc's payables turnover has also shown variability, averaging around 30 times per year. The company has managed its payments efficiently, meeting its obligations to suppliers within a reasonable timeframe.
3. Inventory Turnover: Unfortunately, there is no data provided for this ratio in the dataset. Inventory turnover measures how quickly a company sells its inventory. Without this information, it is challenging to assess how effectively Old Dominion Freight Line Inc is managing its inventory.
4. Working Capital Turnover: This ratio evaluates how effectively a company generates sales revenue from its working capital. Old Dominion Freight Line Inc's working capital turnover has been increasing over the periods, indicating improved efficiency in utilizing its working capital to generate sales. This suggests that the company is operating more efficiently and generating more revenue per dollar of working capital.
In conclusion, based on the data provided, Old Dominion Freight Line Inc has shown a satisfactory performance in managing its receivables and working capital efficiently. However, further information on inventory turnover would provide a more comprehensive analysis of the company's overall activity ratios.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 33.12 | 35.44 | 36.86 | 37.35 | 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 |
| Number of days of payables | days | 9.95 | 10.72 | 12.23 | 10.76 | 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 |
Old Dominion Freight Line Inc's activity ratios can provide insights into the efficiency of its operations and management of working capital.
1. Days of Inventory on Hand (DOH): The company's DOH data is not available in the provided information. DOH measures how efficiently a company manages its inventory by showing the average number of days it takes to sell its inventory. A lower DOH generally indicates better inventory management.
2. Days of Sales Outstanding (DSO): Over the period from March 2020 to December 2024, Old Dominion Freight Line Inc's DSO has shown fluctuations. The DSO represents the average number of days it takes for the company to collect revenue after a sale. A decreasing trend in DSO indicates that the company is collecting its receivables more quickly, which can improve cash flow and liquidity.
3. Number of Days of Payables: The number of days of payables for Old Dominion Freight Line Inc has also varied during the specified period. This metric measures how long it takes the company to pay its suppliers. A higher number of days indicates that the company is taking longer to pay its suppliers, which can be seen as a positive sign as it reflects better working capital management.
In summary, monitoring these activity ratios can help stakeholders assess how efficiently Old Dominion Freight Line Inc is managing its inventory, collecting receivables, and paying its payables. Improvements in these ratios over time can indicate effective management of working capital and operational efficiency.
See also:
Old Dominion Freight Line Inc Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.29 | 1.34 | 1.40 | 1.43 | 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 |
| Total asset turnover | 1.06 | 1.09 | 1.12 | 1.04 | 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 |
Old Dominion Freight Line Inc's Fixed Asset Turnover has generally shown an upward trend over the years, with a slight fluctuation in the recent quarters. The ratio increased from 1.39 in March 2020 to 1.77 in June 2022, indicating that the company is generating more revenue relative to its investment in fixed assets. However, there was a slight decline to 1.29 in December 2024.
On the other hand, the Total Asset Turnover ratio has shown some volatility, initially decreasing from 1.04 in March 2020 to 0.92 in December 2020 before gradually increasing to 1.29 in December 2022. Subsequently, the ratio decreased to 1.06 in December 2024.
Overall, the Fixed Asset Turnover suggests that Old Dominion Freight Line Inc has been effectively utilizing its fixed assets to generate revenue, while the Total Asset Turnover indicates fluctuations in the efficiency of utilizing all assets to generate sales over the years. Further analysis and comparison with industry benchmarks would provide more insights into the company's operational efficiency and asset utilization.
See also:
Old Dominion Freight Line Inc Long-term (Investment) Activity Ratios (Quarterly Data)