Old Dominion Freight Line Inc (ODFL)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
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
Current ratio		1.33	2.10	1.76	2.98	3.33

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $720,683K ÷ $540,529K
= 1.33

Old Dominion Freight Line Inc's current ratio has shown some fluctuations over the past five years. As of December 31, 2020, the company had a strong current ratio of 3.33, indicating a healthy ability to cover its short-term obligations with its current assets.

However, by December 31, 2021, the current ratio had decreased to 2.98, although it still remained above the ideal value of 2, suggesting the company's liquidity position was still solid.

The ratio saw a more significant decline by December 31, 2022, dropping to 1.76. This could indicate potential challenges in meeting short-term obligations with current assets alone.

By December 31, 2023, there was a slight improvement in the current ratio to 2.10, but it remained below the levels seen in the earlier years.

The ratio fell further to 1.33 by December 31, 2024, indicating a significant decrease in the company's liquidity position. This could be a cause for concern, as a current ratio below 1 suggests that the company may have difficulties meeting its short-term obligations with its current assets.

Overall, the trend in Old Dominion Freight Line Inc's current ratio shows some variability, with fluctuations that may require further investigation into the company's liquidity management and financial health.