Old Dominion Freight Line Inc (ODFL)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Current ratio		2.10	1.76	2.98	3.33	2.37

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,143,330K ÷ $544,658K
= 2.10

The current ratio for Old Dominion Freight Line, Inc. has fluctuated over the past five years. It decreased from 2.37 in 2019 to 2.10 in 2020, indicating a reduction in the company's ability to cover its short-term liabilities with current assets during that period. However, in 2021, the current ratio significantly improved to 2.98, demonstrating a stronger liquidity position. The ratio further increased to 3.33 in 2022, signaling an even better ability to meet short-term obligations.

In the most recent year, 2023, the current ratio slightly decreased to 1.76, which suggests a decline in the firm's liquidity compared to the previous year. While the current ratio is still above 1, indicating that Old Dominion Freight Line, Inc. can cover its short-term debts with available current assets, the downward trend may warrant further examination to understand the reasons behind the reduction in liquidity from the prior year.