Old Dominion Freight Line Inc (ODFL)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	2,446,067	2,557,845	2,623,693	2,583,702	2,597,016	2,631,624	2,724,194	2,929,030	2,964,214	2,885,271	2,715,305	2,471,006	2,244,991	2,043,700	1,836,098	1,573,137	1,459,268	2,102,736	2,082,895	2,176,948
Revenue (ttm)	US$ in thousands	5,815,630	5,938,920	5,983,990	5,898,480	5,885,610	5,867,450	5,955,860	6,210,120	6,262,120	6,180,360	5,976,720	5,628,680	5,256,110	4,918,280	4,576,400	4,153,200	4,014,576	3,950,876	3,941,166	4,105,626
Gross profit margin		42.06%	43.07%	43.85%	43.80%	44.12%	44.85%	45.74%	47.17%	47.34%	46.68%	45.43%	43.90%	42.71%	41.55%	40.12%	37.88%	36.35%	53.22%	52.85%	53.02%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,446,067K ÷ $5,815,630K
= 42.06%

Old Dominion Freight Line Inc has shown fluctuations in its gross profit margin over the years. The trend indicates a general improvement in the margin from March 2020 to December 2022, with a peak of 47.34% recorded in December 2022. However, the margin started declining thereafter, reaching 42.06% by December 2024.

The gross profit margin of the company reflects the percentage of revenue that remains after deducting the cost of goods sold. A higher gross profit margin is generally favorable as it indicates better operational efficiency and profitability.

It is essential for investors and analysts to closely monitor changes in the gross profit margin as it provides insights into the company's pricing strategy, cost structure, and overall financial health. The decrease in the gross profit margin from December 2022 to December 2024 may raise concerns about potential challenges in managing costs or pricing pressures in the industry.

Overall, while the gross profit margin of Old Dominion Freight Line Inc has fluctuated over the years, it is important to analyze the trend in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial performance and prospects.