Old Dominion Freight Line Inc (ODFL)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	108,676	433,799	186,312	462,564	401,430
Short-term investments	US$ in thousands	0	0	49,355	254,433	330,274
Receivables	US$ in thousands	527,691	615,323	605,129	599,102	454,222
Total current liabilities	US$ in thousands	540,529	544,658	529,793	464,234	373,130
Quick ratio		1.18	1.93	1.59	2.83	3.18

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($108,676K + $0K + $527,691K) ÷ $540,529K
= 1.18

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. In the case of Old Dominion Freight Line Inc, the trend in the quick ratio over the past five years has shown some fluctuations.

As of December 31, 2020, the quick ratio stood at a healthy 3.18, indicating that the company had $3.18 of liquid assets available to cover each dollar of current liabilities. However, by December 31, 2021, the quick ratio had decreased to 2.83, which suggests a slight decrease in liquidity compared to the previous year.

By December 31, 2022, the quick ratio dropped significantly to 1.59, signaling a potential liquidity challenge as the company had $1.59 in liquid assets for every dollar of current liabilities. The ratio improved in the following year, reaching 1.93 by December 31, 2023, indicating a slight recovery in liquidity.

However, by December 31, 2024, the quick ratio fell further to 1.18, which may raise concerns about the company's ability to meet its short-term obligations using its readily available assets. Overall, while Old Dominion Freight Line Inc has shown fluctuations in its quick ratio over the years, it is important for stakeholders to monitor this ratio closely to ensure the company maintains an optimal level of liquidity to meet its financial commitments.