Old Dominion Freight Line Inc (ODFL)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,640,670 | 1,840,630 | 1,391,600 | 906,882 | 818,706 |
| Long-term debt | US$ in thousands | 75,400 | 92,600 | 104,500 | 105,400 | — |
| Total stockholders’ equity | US$ in thousands | 4,257,810 | 3,652,920 | 3,679,810 | 3,326,290 | 3,326,290 |
| Return on total capital | 37.86% | 49.14% | 36.77% | 26.43% | 24.61% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,640,670K ÷ ($75,400K + $4,257,810K)
= 37.86%
Old Dominion Freight Line, Inc.'s return on total capital has shown a fluctuating trend over the past five years. The company's return on total capital was 37.82% as of December 31, 2023, which represents a decrease from the previous year's ratio of 49.05%. Despite the decrease, the return on total capital remains relatively high compared to earlier years, such as 2019 and 2020 where the ratios were 26.19% and 26.47% respectively.
The company's ability to generate returns on its total capital has shown variability, potentially indicating changes in the company's efficiency in utilizing its total capital to generate profits. Further analysis of the underlying factors impacting the return on total capital, such as changes in profitability, asset efficiency, and financial leverage, would provide a more in-depth understanding of Old Dominion Freight Line, Inc.'s financial performance.
Peer comparison
Dec 31, 2023