Old Dominion Freight Line Inc (ODFL)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,544,000 | 1,640,670 | 1,840,630 | 1,391,600 | 906,882 |
| Total assets | US$ in thousands | 5,491,400 | 5,512,390 | 4,838,610 | 4,821,540 | 4,369,410 |
| Operating ROA | 28.12% | 29.76% | 38.04% | 28.86% | 20.76% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,544,000K ÷ $5,491,400K
= 28.12%
Operating ROA calculates how efficiently a company generates operating profit relative to its total assets. Old Dominion Freight Line Inc's Operating ROA has shown a positive trajectory over the years. In 2020, the Operating ROA was 20.76%, indicating that for every dollar of assets, the company generated 20.76 cents in operating profit.
By 2021, the Operating ROA improved significantly to 28.86%, signaling enhanced operational efficiency and profitability. The company continued this trend in 2022, reaching an even higher Operating ROA of 38.04%, showcasing robust performance in utilizing its assets to drive operating income.
In 2023, the Operating ROA slightly decreased to 29.76%, indicating a minor dip in efficiency compared to the previous year. By 2024, the Operating ROA decreased further to 28.12%, showing a potential challenge in maintaining the peak efficiency levels seen in 2022.
Overall, Old Dominion Freight Line Inc has generally demonstrated strong operating efficiency in utilizing its assets to generate operating income, with some fluctuations in performance observed in the later years. Monitoring and managing Operating ROA will be crucial for the company to sustain and enhance its profitability in the future.
Peer comparison
Dec 31, 2024