Old Dominion Freight Line Inc (ODFL)

Debt-to-capital ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Long-term debt	US$ in thousands	56,500	57,300	56,000	74,500	75,400	72,300	74,000	94,200	92,600	89,600	94,700	98,100	104,500	104,800	104,000	104,700	105,400	151,100	150,400	45,500
Total stockholders’ equity	US$ in thousands	4,244,590	4,175,740	4,111,900	4,401,640	4,257,810	4,063,120	3,832,040	3,746,500	3,652,920	3,558,170	3,555,830	3,503,310	3,679,810	3,419,900	3,402,380	3,191,920	3,326,290	3,170,830	2,982,470	3,016,050
Debt-to-capital ratio		0.01	0.01	0.01	0.02	0.02	0.02	0.02	0.02	0.02	0.02	0.03	0.03	0.03	0.03	0.03	0.03	0.03	0.05	0.05	0.01

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $56,500K ÷ ($56,500K + $4,244,590K)
= 0.01

Old Dominion Freight Line Inc's debt-to-capital ratio has been relatively stable over the past few years, ranging from 0.01 to 0.05. The ratio measures the proportion of the company's capital that is financed through debt, with the remainder funded by equity.

A lower debt-to-capital ratio indicates that the company relies more on equity financing rather than debt, which can be seen as a positive sign of financial stability and lower financial risk. In Old Dominion Freight Line Inc's case, the decreasing trend in the ratio from 0.05 to 0.01 by December 31, 2024 suggests a prudent approach to managing its capital structure.

Overall, the company's consistent low debt-to-capital ratio indicates a conservative financial strategy, potentially reducing the risks associated with high debt levels and ensuring a solid financial position for Old Dominion Freight Line Inc.