Old Dominion Freight Line Inc (ODFL)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,888,710	6,263,500	5,256,890	4,014,390	4,103,040
Total current assets	US$ in thousands	1,143,330	933,740	1,383,790	1,243,340	866,834
Total current liabilities	US$ in thousands	544,658	529,793	464,234	373,130	366,085
Working capital turnover		9.84	15.51	5.72	4.61	8.19

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,888,710K ÷ ($1,143,330K – $544,658K)
= 9.84

Old Dominion Freight Line, Inc.'s working capital turnover has shown fluctuating trends over the past five years, as indicated by the data. The ratio has ranged from a low of 4.61 in 2020 to a high of 15.50 in 2022, with 2023 settling at 9.80.

A higher working capital turnover ratio generally indicates that the company is efficiently using its working capital to generate revenue. In this case, the significantly higher ratio of 15.50 in 2022 suggests that Old Dominion Freight Line, Inc. effectively utilized its working capital to create revenue during that year.

However, the considerable fluctuations in the ratio over the years could indicate varying efficiency levels in managing working capital. Further analysis is needed to determine the root causes of these fluctuations and whether they are attributed to changes in the company's operations, industry dynamics, or other external factors.