Old Dominion Freight Line Inc (ODFL)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	5,818,210	5,888,710	6,263,500	5,256,890	4,014,390
Receivables	US$ in thousands	527,691	615,323	605,129	599,102	454,222
Receivables turnover		11.03	9.57	10.35	8.77	8.84

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $5,818,210K ÷ $527,691K
= 11.03

The receivables turnover ratio for Old Dominion Freight Line Inc has shown a fluctuating trend over the past five years.

In December 2020, the receivables turnover stood at 8.84 times, indicating that the company collected its accounts receivable approximately 8.84 times during that year. There was a slight decrease in the ratio to 8.77 times by December 2021, suggesting a slightly longer collection period for receivables.

However, in December 2022, there was a notable improvement with the receivables turnover ratio increasing to 10.35 times, reflecting a more efficient collection of receivables. By December 2023, the ratio slightly declined to 9.57 times, indicating a moderate decrease in the frequency of collecting accounts receivable.

The most recent data point in December 2024 shows a significant improvement in the receivables turnover ratio to 11.03 times. This suggests that Old Dominion Freight Line Inc has been able to enhance its efficiency in collecting outstanding receivables over the course of the year.

Overall, the trend in the receivables turnover ratio indicates fluctuations, with some periods of improvement and slight declines. The company's management should continue to focus on maintaining an optimal balance between credit sales and efficient collection practices to ensure healthy cash flows and working capital management.