Old Dominion Freight Line Inc (ODFL)

Current 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
Total current assets	US$ in thousands	1,143,330	954,216	730,609	896,950	933,740	1,111,200	1,209,090	1,280,960	1,383,790	1,278,850	1,311,120	1,223,260	1,243,340	1,138,500	968,570	831,006	866,834	806,978	741,420	783,878
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
Current ratio		2.10	1.73	1.45	1.57	1.76	1.74	1.92	2.21	2.98	2.39	2.72	2.38	3.33	2.53	1.96	1.94	2.37	2.03	1.92	2.19

December 31, 2023 calculation

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

The current ratio of Old Dominion Freight Line, Inc. has fluctuated over the past eight quarters, ranging from a low of 1.45 in Q2 2023 to a high of 2.21 in Q1 2022. The current ratio measures the company's ability to meet its short-term financial obligations with its current assets.

An ideal current ratio is generally considered to be around 2, as it indicates that the company has more than enough current assets to cover its current liabilities. In this case, Old Dominion Freight Line, Inc. has maintained a current ratio above 1, which suggests that the company is able to cover its short-term liabilities.

The downward trend seen in recent quarters may indicate a reduction in the company's ability to cover its short-term obligations, although the current ratio remains above 1, indicating that the company still has sufficient current assets to meet its current liabilities. Monitoring this ratio over time will be important to ensure the company's liquidity position remains healthy.