Old Dominion Freight Line Inc (ODFL)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.02 | 0.02 | 0.03 | 0.03 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $75,400K ÷ ($75,400K + $4,257,810K)
= 0.02
The debt-to-capital ratio of Old Dominion Freight Line, Inc. has been relatively stable over the past five years. It decreased from 0.03 in 2019 to 0.01 in 2020 before gradually increasing to 0.03 in 2021 and 2022, and then decreasing to 0.02 in 2023.
A low debt-to-capital ratio indicates that the company has a lower level of debt in relation to its total capital structure. This suggests that Old Dominion Freight Line, Inc. relies more on equity financing rather than debt financing to fund its operations and growth.
The slight fluctuations in the debt-to-capital ratio over the years may be attributed to changes in the company's capital structure and financial management decisions. Overall, the company's conservative approach to debt usage is a positive signal to investors and creditors, as it signifies lower financial risk and potentially better financial health.
Peer comparison
Dec 31, 2023