Old Dominion Freight Line Inc (ODFL)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	56,500	75,400	92,600	104,500	105,400
Total assets	US$ in thousands	5,491,400	5,512,390	4,838,610	4,821,540	4,369,410
Debt-to-assets ratio		0.01	0.01	0.02	0.02	0.02

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $56,500K ÷ $5,491,400K
= 0.01

The debt-to-assets ratio for Old Dominion Freight Line Inc has remained relatively stable over the past five years, standing at 0.02 as of December 31, 2020, 2021, and 2022. This indicates that the company relies very little on debt to finance its assets, a positive sign of strong financial health and prudent financial management.

However, there was a slight decrease in the ratio to 0.01 as of December 31, 2023 and 2024. This could suggest that Old Dominion Freight Line Inc has either reduced its debt levels or increased its asset base during these years, further improving its financial position and lowering its financial risk.

Overall, the consistently low debt-to-assets ratio reflects the company's ability to fund its operations primarily through equity and retained earnings, reducing its vulnerability to financial distress and enhancing its overall financial stability.