Old Dominion Freight Line Inc (ODFL)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	1,543,998	1,630,989	1,674,147	1,644,050	1,640,673	1,649,891	1,700,952	1,818,063	1,840,632	1,782,894	1,670,224	1,527,563	1,391,602	1,273,413	1,160,247	993,369	906,882	840,844	788,127	823,450
Total assets	US$ in thousands	5,491,400	5,425,830	5,343,100	5,651,360	5,512,390	5,298,870	4,978,930	4,957,090	4,838,610	4,811,390	4,793,870	4,722,650	4,821,540	4,613,120	4,534,450	4,351,860	4,369,410	4,273,690	4,080,030	3,934,990
Operating ROA		28.12%	30.06%	31.33%	29.09%	29.76%	31.14%	34.16%	36.68%	38.04%	37.06%	34.84%	32.35%	28.86%	27.60%	25.59%	22.83%	20.76%	19.67%	19.32%	20.93%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,543,998K ÷ $5,491,400K
= 28.12%

Operating return on assets (Operating ROA) is a key financial ratio that indicates how efficiently a company is generating operating profit relative to its total assets. For Old Dominion Freight Line Inc, the Operating ROA has shown a generally positive trend over the past few years.

From March 31, 2020, to December 31, 2022, the Operating ROA steadily increased from 20.93% to 38.04%, indicating an improvement in the company's ability to generate operating income from its assets during this period.

However, from March 31, 2023, to December 31, 2024, there was a slight decline in the Operating ROA, falling from 36.68% to 28.12%. This decrease suggests a potential decrease in the company's ability to efficiently utilize its assets to generate operating income during this period.

Overall, Old Dominion Freight Line Inc has demonstrated a strong performance in terms of Operating ROA in recent years, but the recent decline in the ratio indicates a need for further scrutiny to understand the factors impacting the company's operating efficiency and profitability.