Old Dominion Freight Line Inc (ODFL)

Quick ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash	US$ in thousands	108,676	74,163	74,304	580,974	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
Short-term investments	US$ in thousands	0	—	30,271	—	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	527,691	576,681	604,338	603,529	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
Total current liabilities	US$ in thousands	540,529	553,580	552,754	550,674	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
Quick ratio		1.18	1.18	1.28	2.15	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

December 31, 2024 calculation

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

Old Dominion Freight Line Inc's quick ratio has fluctuated over the past few years, ranging from a low of 1.18 to a high of 3.18. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its current liabilities.

From December 31, 2020, to September 30, 2021, the quick ratio steadily increased from 3.18 to 2.28, indicating an improvement in the company's short-term liquidity position. However, there was a slight dip in the quick ratio to 2.11 by March 31, 2022, followed by a more significant decrease to 1.79 by June 30, 2022.

Although the quick ratio recovered to 2.83 by December 31, 2021, it experienced some fluctuation in the following quarters, eventually dropping to 1.18 by December 31, 2024. This decline may raise concerns about the company's ability to meet its short-term obligations using its quick assets alone.

Overall, while Old Dominion Freight Line Inc's quick ratio has shown variability over the years, it is important to monitor the trend and ensure that the company maintains a healthy level of liquidity to meet its short-term financial commitments.