Old Dominion Freight Line Inc (ODFL)

Quick 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
Cash	US$ in thousands	433,799	206,601	55,141	207,624	186,312	216,727	196,134	262,122	462,564	339,761	484,204	351,900	401,430	420,396	518,624	356,972	403,571	322,286	228,960	280,627
Short-term investments	US$ in thousands	0	0	0	24,807	49,355	158,829	224,391	279,183	254,433	224,899	165,254	310,193	330,274	205,294	—	—	—	—	—	—
Receivables	US$ in thousands	615,323	663,727	568,746	579,879	605,129	653,794	701,367	681,389	599,102	654,049	600,056	505,678	454,222	462,924	395,785	427,613	—	438,075	458,145	455,333
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
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

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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated by dividing a company's quick assets (current assets excluding inventory) by its current liabilities.

For Old Dominion Freight Line, Inc., the quick ratio has fluctuated over the past eight quarters. The quick ratio was highest in Q4 2023 at 2.10 and lowest in Q2 2023 at 1.45. Generally, a quick ratio above 1 indicates that a company has enough liquid assets to cover its short-term liabilities, with higher ratios suggesting a stronger ability to meet these obligations.

Old Dominion Freight Line's quick ratio has shown some variability over the past two years, ranging from a high of 2.21 in Q1 2022 to a low of 1.45 in Q2 2023. While the quick ratio can provide insights into a company's liquidity position, it is essential to consider other factors and ratios in conjunction with the quick ratio to get a comprehensive view of the company's financial health and operational efficiency.