Old Dominion Freight Line Inc (ODFL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.15% | 47.35% | 42.72% | 36.35% | 35.14% |
| Operating profit margin | 27.86% | 29.39% | 26.47% | 22.59% | 19.95% |
| Pretax margin | 27.98% | 29.40% | 26.41% | 22.45% | 20.08% |
| Net profit margin | 21.05% | 21.99% | 19.68% | 16.76% | 15.00% |
Old Dominion Freight Line, Inc. has shown consistent and impressive profitability ratios over the past five years. The company's gross profit margin remained at 100% throughout the period, indicating strong control over production and operational costs.
In terms of operating profit margin, Old Dominion Freight Line, Inc. exhibited a slight decrease in 2023 compared to the previous year, but overall, it has maintained healthy levels above 22% over the last five years. This suggests efficient management of operating expenses and a strong core business performance.
The pretax margin also saw a slight dip in 2023 but has generally remained robust, staying above 20% consistently. This indicates the company's ability to generate profits before accounting for taxes at a high level relative to its revenue.
Furthermore, the net profit margin of Old Dominion Freight Line, Inc. has shown a positive trend, increasing from 14.98% in 2019 to 21.13% in 2023. This signifies effective cost management, improved profitability, and potentially higher returns for shareholders over the years.
Overall, Old Dominion Freight Line, Inc. demonstrates solid profitability ratios, reflecting its efficiency in controlling costs, managing operations, and generating profits.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 29.76% | 38.04% | 28.86% | 20.76% | 20.49% |
| Return on assets (ROA) | 22.49% | 28.46% | 21.45% | 15.40% | 15.41% |
| Return on total capital | 37.86% | 49.14% | 36.77% | 26.43% | 24.61% |
| Return on equity (ROE) | 29.11% | 37.70% | 28.11% | 20.22% | 18.50% |
Old Dominion Freight Line, Inc. has shown consistently strong profitability ratios over the past five years.
The operating return on assets (Operating ROA) has fluctuated over the years but remained generally high, indicating that the company is efficient in generating operating income from its assets. The Operating ROA decreased from 38.04% in 2022 to 29.76% in 2023, possibly due to changes in operating expenses or asset utilization.
Return on assets (ROA) also exhibited a similar trend, with a decrease from 28.46% in 2022 to 22.49% in 2023. This ratio signifies the company's ability to generate profits from its total assets, including both operating and non-operating activities.
Return on total capital, which takes into account the company's debt and equity, has been consistently high, indicating strong returns on the capital invested in the business. The ratio decreased slightly from 49.05% in 2022 to 37.82% in 2023.
Return on equity (ROE) shows how efficiently the company is utilizing shareholders' equity to generate profit. Old Dominion Freight Line, Inc. has maintained a healthy ROE over the years, with a slight decrease from 37.70% in 2022 to 29.11% in 2023.
Overall, these profitability ratios suggest that Old Dominion Freight Line, Inc. has been effective in generating returns for its shareholders and optimizing its asset utilization, despite some fluctuations in performance metrics.