Old Dominion Freight Line Inc (ODFL)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,647,780 | 1,841,350 | 1,388,420 | 901,364 | 823,949 |
| Revenue | US$ in thousands | 5,888,710 | 6,263,500 | 5,256,890 | 4,014,390 | 4,103,040 |
| Pretax margin | 27.98% | 29.40% | 26.41% | 22.45% | 20.08% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,647,780K ÷ $5,888,710K
= 27.98%
The pretax margin of Old Dominion Freight Line, Inc. has shown a generally positive trend over the past five years, reflecting the company's ability to effectively manage its operating expenses relative to its revenue. Specifically, the pretax margin increased from 20.05% in 2019 to 28.09% in 2023.
This improvement indicates that Old Dominion Freight Line, Inc. has been successful in controlling its costs and operating more efficiently, leading to higher profitability before taxes. The upward trend in pretax margin suggests that the company has been able to generate more income from its operations for each dollar of revenue generated.
The consistent growth in pretax margin from 2019 to 2023 demonstrates management's effectiveness in optimizing the company's financial performance. Overall, the increasing trend in pretax margin reflects positively on Old Dominion Freight Line, Inc.'s financial health and operational efficiency over the past five years.
Peer comparison
Dec 31, 2023