Old Dominion Freight Line Inc (ODFL)

Receivables 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
Revenue (ttm)	US$ in thousands	5,885,610	5,867,450	5,955,860	6,210,120	6,262,120	6,180,360	5,976,720	5,628,680	5,256,110	4,918,280	4,576,400	4,153,200	4,014,576	3,950,876	3,941,166	4,105,626	4,108,645	4,126,375	4,136,145	4,108,975
Receivables	US$ in thousands	615,323	663,727	568,746	579,879	605,129	653,794	701,367	681,389	599,102	654,049	600,056	505,678	454,222	462,924	395,785	427,613	—	438,075	458,145	455,333
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,885,610K ÷ $615,323K
= 9.57

Old Dominion Freight Line, Inc.'s receivables turnover has shown some fluctuation over the past eight quarters. In Q4 2023, the receivables turnover stood at 9.53, indicating that the company collected its accounts receivable approximately 9.53 times during that quarter. This represented an increase compared to the previous quarter at 8.83.

Looking back over the last two years, the receivables turnover has generally been at a healthy level, ranging from 8.26 to 10.70. Variations in the receivables turnover can be influenced by factors such as the company's credit policies, efficiency in collecting outstanding invoices, customer payment behavior, and overall sales volume.

An upward trend in the receivables turnover ratio, such as the increase from Q3 2023 to Q4 2023, can indicate that Old Dominion Freight Line, Inc. is managing its accounts receivable more effectively, converting them into cash at a faster rate. However, a single ratio should be interpreted in the context of trend analysis and compared with industry benchmarks to provide a more comprehensive assessment of the company's receivables management efficiency.