Old Dominion Freight Line Inc (ODFL)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	4,244,590	4,257,810	3,652,920	3,679,810	3,326,290
Debt-to-equity ratio		0.01	0.02	0.03	0.03	0.03

December 31, 2024 calculation

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

Old Dominion Freight Line Inc's debt-to-equity ratio has remained quite consistent over the years, with a low ratio of 0.03 as of December 31, 2020, December 31, 2021, and December 31, 2022. However, there has been a slight decrease in the ratio to 0.02 as of December 31, 2023, and a further decrease to 0.01 as of December 31, 2024. This downward trend indicates that the company's reliance on debt relative to equity has been decreasing over time, which may signal a strengthening financial position and lower financial risk. Overall, the decreasing trend in the debt-to-equity ratio suggests that Old Dominion Freight Line Inc has been effectively managing its debt levels in relation to equity, potentially enhancing its financial stability and solvency.