Old Dominion Freight Line Inc (ODFL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.09% | 44.15% | 47.35% | 42.72% | 36.35% |
| Operating profit margin | 26.54% | 27.86% | 29.39% | 26.47% | 22.59% |
| Pretax margin | 26.77% | 27.98% | 29.40% | 26.41% | 22.45% |
| Net profit margin | 20.39% | 21.05% | 21.99% | 19.68% | 16.76% |
Old Dominion Freight Line Inc has shown a positive trend in its profitability ratios over the past five years.
- The Gross Profit Margin has increased steadily from 36.35% in December 2020 to 42.09% in December 2024, indicating the company's ability to generate more profit from its revenues after accounting for the cost of goods sold.
- The Operating Profit Margin also saw a consistent improvement, rising from 22.59% in December 2020 to 26.54% in December 2024, reflecting the efficiency of the company in managing its operating expenses and generating profit from its core business activities.
- The Pretax Margin, which represents the company's profitability before accounting for taxes, increased from 22.45% in December 2020 to 26.77% in December 2024, suggesting effective overall financial management.
- The Net Profit Margin, a key indicator of bottom-line profitability, exhibited growth from 16.76% in December 2020 to 20.39% in December 2024, highlighting Old Dominion Freight Line's ability to translate its revenues into net income for shareholders.
Overall, the improving trend in profitability ratios reflects Old Dominion Freight Line Inc's strong operational performance and efficiency in managing costs, ultimately resulting in higher profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 28.12% | 29.76% | 38.04% | 28.86% | 20.76% |
| Return on assets (ROA) | 21.60% | 22.49% | 28.46% | 21.45% | 15.40% |
| Return on total capital | 35.90% | 37.86% | 49.14% | 36.77% | 26.43% |
| Return on equity (ROE) | 27.94% | 29.11% | 37.70% | 28.11% | 20.22% |
Old Dominion Freight Line Inc has shown a consistent improvement in its profitability ratios over the years.
- Operating Return on Assets (Operating ROA): The company's Operating ROA has increased from 20.76% in 2020 to 38.04% in 2022, indicating an efficient use of assets to generate operating profits. Although there was a slight decrease to 29.76% in 2023 and 28.12% in 2024, the overall trend reflects strong operational performance.
- Return on Assets (ROA): The ROA also demonstrates a positive trend, rising from 15.40% in 2020 to 28.46% in 2022. This suggests that the company has been effectively generating profits relative to its total assets. The slight decrease to 21.60% in 2024 may indicate some challenges in asset utilization efficiency.
- Return on Total Capital: Old Dominion Freight Line Inc's Return on Total Capital has consistently improved, increasing from 26.43% in 2020 to 49.14% in 2022. This indicates the company's ability to generate returns for both debt and equity holders. The decline to 35.90% in 2024 may signal a decrease in overall profitability relative to the total invested capital.
- Return on Equity (ROE): The ROE also exhibits a positive trajectory, rising from 20.22% in 2020 to 37.70% in 2022, reflecting the company's ability to generate strong returns for its shareholders. The decrease to 27.94% in 2024 may suggest a moderate decline in the profitability attributable to shareholders' equity.
Overall, the profitability ratios of Old Dominion Freight Line Inc reveal a solid performance in effectively utilizing assets and generating returns for both investors and stakeholders, with some fluctuations in profitability levels over the years.