Old Dominion Freight Line Inc (ODFL)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	433,799	206,601	55,141	207,624	186,312	216,727	196,134	262,122	462,564	339,761	484,204	351,900	401,430	420,396	518,624	356,972	403,571	322,286	228,960	280,627
Short-term investments	US$ in thousands	0	0	0	24,807	49,355	158,829	224,391	279,183	254,433	224,899	165,254	310,193	330,274	205,294	—	—	—	—	—	—
Total current liabilities	US$ in thousands	544,658	552,350	503,018	569,520	529,793	639,327	628,178	578,596	464,234	534,291	482,018	513,862	373,130	449,288	494,174	428,295	366,085	396,862	386,105	358,155
Cash ratio		0.80	0.37	0.11	0.41	0.44	0.59	0.67	0.94	1.54	1.06	1.35	1.29	1.96	1.39	1.05	0.83	1.10	0.81	0.59	0.78

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($433,799K + $0K) ÷ $544,658K
= 0.80

The cash ratio of Old Dominion Freight Line, Inc. has shown fluctuations over the past eight quarters. The cash ratio for Q4 2023 stands at 0.97, indicating that the company has $0.97 in cash and cash equivalents for every $1 of its current liabilities. This implies that the company has a strong ability to cover its short-term obligations using its available cash resources.

Comparing this to the previous quarters, the Q4 2023 cash ratio is an improvement from the previous quarter, Q3 2023, where the ratio was 0.53. This significant increase in the cash ratio from the previous quarter suggests that the company has increased its liquidity position or reduced its short-term liabilities.

Furthermore, when looking at the trend over the past year, the cash ratio has been relatively volatile. It ranged from a low of 0.32 in Q2 2023 to a high of 1.04 in Q1 2022. The variations in the cash ratio indicate fluctuations in the company's liquidity position over the quarters.

Overall, although the cash ratio has shown fluctuations, the current ratio of 0.97 in Q4 2023 indicates that Old Dominion Freight Line, Inc. has a sufficient level of cash to meet its short-term obligations. However, management should continue monitoring and managing the liquidity position to ensure the company remains financially healthy and able to meet its obligations as they come due.