Old Dominion Freight Line Inc (ODFL)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,544,000 | 1,640,670 | 1,840,630 | 1,391,600 | 906,882 |
| Long-term debt | US$ in thousands | 56,500 | 75,400 | 92,600 | 104,500 | 105,400 |
| Total stockholders’ equity | US$ in thousands | 4,244,590 | 4,257,810 | 3,652,920 | 3,679,810 | 3,326,290 |
| Return on total capital | 35.90% | 37.86% | 49.14% | 36.77% | 26.43% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,544,000K ÷ ($56,500K + $4,244,590K)
= 35.90%
Old Dominion Freight Line Inc's return on total capital has shown a positive trend over the past five years. The ratio increased from 26.43% in December 2020 to 36.77% in December 2021, indicating improved efficiency in generating returns from the total capital employed in the business. Subsequently, there was a significant spike to 49.14% by December 2022, reflecting strong performance in utilizing the company's capital effectively.
Although there was a slight decrease in return on total capital to 37.86% by December 2023, the ratio remained at a relatively high level, signifying the company's ability to generate profits relative to the total capital invested. In the most recent year, December 2024, Old Dominion Freight Line Inc maintained a solid return on total capital of 35.90%.
Overall, the company's consistent track record of achieving returns above 30% indicates efficient capital allocation and operational management, which is favorable for shareholders and indicates a robust financial performance.
Peer comparison
Dec 31, 2024