Old Dominion Freight Line Inc (ODFL)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	2,448,650	2,600,120	2,965,590	2,245,770	1,459,090
Revenue	US$ in thousands	5,818,210	5,888,710	6,263,500	5,256,890	4,014,390
Gross profit margin		42.09%	44.15%	47.35%	42.72%	36.35%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,448,650K ÷ $5,818,210K
= 42.09%

Based on the data provided, we observe an increasing trend in Old Dominion Freight Line Inc's gross profit margin over the years. The company's gross profit margin was 36.35% as of December 31, 2020, which increased to 42.72% as of December 31, 2021. This positive trend continued with further improvements in the subsequent years, reaching 47.35% by December 31, 2022. However, there was a slight decrease in the gross profit margin to 44.15% by December 31, 2023, followed by a further decrease to 42.09% by December 31, 2024.

The increasing trend in the gross profit margin from 2020 to 2022 indicates an enhancement in the company's ability to generate profits from its core operations. This improvement could be attributed to various factors such as effective cost management, pricing strategies, operational efficiencies, and revenue growth. However, the slight decreases in the later years suggest potential challenges or changes in the company's operating environment that may have impacted its profitability.

Overall, the fluctuation in Old Dominion Freight Line Inc's gross profit margin highlights the importance of continuous monitoring and analysis of financial performance metrics to assess the company's operational efficiency and profitability over time.