Old Dominion Freight Line Inc (ODFL)

Working capital 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
Total current assets	US$ in thousands	720,683	1,143,330	933,740	1,383,790	1,243,340
Total current liabilities	US$ in thousands	540,529	544,658	529,793	464,234	373,130
Working capital turnover		32.30	9.84	15.51	5.72	4.61

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,818,210K ÷ ($720,683K – $540,529K)
= 32.30

Old Dominion Freight Line Inc has shown a positive trend in its working capital turnover ratio over the past five years. The ratio has steadily increased from 4.61 in December 31, 2020, to 32.30 in December 31, 2024.

This indicates that the company has become more efficient in managing its working capital to generate revenue during this period. A higher working capital turnover ratio signifies that the company is efficiently utilizing its working capital to support its operations and generate sales.

The significant improvement seen in the most recent years, particularly the steep increase from 2022 to 2024, suggests that Old Dominion Freight Line Inc has optimized its working capital management practices, leading to increased efficiency and potentially stronger financial performance.