Old Dominion Freight Line Inc (ODFL)

Liquidity ratios

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
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
Quick ratio 1.93 1.58 1.24 1.43 1.59 1.61 1.79 2.11 2.83 2.28 2.59 2.27 3.18 2.42 1.85 1.83 1.10 1.92 1.78 2.05
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

Old Dominion Freight Line, Inc. has shown consistent improvement in its liquidity ratios over the quarters in 2022 and 2023. The current ratio, a measure of the company's ability to cover its short-term obligations with its current assets, increased from 1.76 in Q4 2022 to 2.10 in Q4 2023, indicating a strengthening liquidity position.

Similarly, the quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, also improved from 1.76 in Q4 2022 to 2.10 in Q4 2023. This suggests that the company has a strong ability to meet its short-term liabilities with its most liquid assets.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has shown fluctuations but remained above 1 for the most part, indicating that Old Dominion Freight Line, Inc. has a sufficient level of cash reserves to meet its short-term obligations. The cash ratio increased from 0.62 in Q4 2022 to 0.97 in Q4 2023, reflecting an improved cash position.

Overall, based on the analysis of liquidity ratios, Old Dominion Freight Line, Inc. appears to have a solid liquidity position, with improving ratios over the quarters indicating a strengthening ability to meet its short-term financial obligations.


See also:

Old Dominion Freight Line Inc Liquidity Ratios (Quarterly Data)


Additional liquidity measure

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 conversion cycle days 25.64 28.24 23.94 20.76 23.51 25.30 27.56 30.56 31.60 31.39 35.74 31.93 31.51 34.38 29.42 30.45 -9.66 27.30 28.41 29.17

Old Dominion Freight Line, Inc.'s cash conversion cycle decreased steadily from Q2 2022 to Q2 2023, indicating an improvement in the company's efficiency in managing its cash flows. The company was able to convert its investments in inventory into cash more quickly during this period.

However, there was a slight increase in the cash conversion cycle in Q3 2023 compared to the previous quarter, which could suggest a temporary slowdown in this efficiency metric. It's worth noting that despite this minor setback, the company's cash conversion cycle in Q3 2023 was still lower than the levels seen in Q4 2022 and Q3 2022.

Overall, Old Dominion Freight Line, Inc. has shown a generally positive trend in managing its cash conversion cycle, with periodic fluctuations that are typical in the freight industry. As a key indicator of operational efficiency and liquidity management, the company's ability to continue optimizing its cash conversion cycle will be essential for sustaining its financial health in the long run.