Old Dominion Freight Line Inc (ODFL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 433,799 | 186,312 | 462,564 | 401,430 | 403,571 |
| Short-term investments | US$ in thousands | 0 | 49,355 | 254,433 | 330,274 | 330,274 |
| Receivables | US$ in thousands | 615,323 | 605,129 | 599,102 | 454,222 | — |
| Total current liabilities | US$ in thousands | 544,658 | 529,793 | 464,234 | 373,130 | 366,085 |
| Quick ratio | 1.93 | 1.59 | 2.83 | 3.18 | 2.00 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($433,799K
+ $0K
+ $615,323K)
÷ $544,658K
= 1.93
The quick ratio of Old Dominion Freight Line, Inc. has fluctuated over the past five years. In 2023, the quick ratio stood at 2.10, indicating that the company had $2.10 in liquid assets available to cover each dollar of current liabilities. This represents an increase from the previous year's ratio of 1.76 but is lower compared to 2020 and 2019.
A quick ratio above 1.0 generally indicates that a company is in a strong position to meet its short-term obligations using its liquid assets. The trend of Old Dominion Freight Line's quick ratio suggests an overall ability to meet its current liabilities with ease, although the ratio has shown some variability in recent years.
It's important to note that while a high quick ratio is typically favorable, an excessively high ratio may suggest that the company is not efficiently utilizing its current assets. Conversely, a low ratio may indicate potential liquidity issues. Therefore, it's crucial to consider the industry norms and specific circumstances of the company when assessing the significance of the quick ratio.
Peer comparison
Dec 31, 2023