Old Dominion Freight Line Inc (ODFL)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	5,512,390	4,838,610	4,821,540	4,369,410	3,995,570
Total stockholders’ equity	US$ in thousands	4,257,810	3,652,920	3,679,810	3,326,290	3,326,290
Financial leverage ratio		1.29	1.32	1.31	1.31	1.20

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,512,390K ÷ $4,257,810K
= 1.29

The financial leverage ratio for Old Dominion Freight Line, Inc. has varied slightly over the past five years, ranging from 1.29 to 1.32. This ratio indicates the company's level of debt relative to its equity and reflects how much the company relies on debt financing.

Old Dominion's financial leverage ratio indicates that the company has been maintaining a stable capital structure with a moderate reliance on debt to finance its operations. A ratio above 1 suggests that the company has more debt than equity in its capital structure. The slight fluctuations in the ratio suggest that the company has been managing its debt levels effectively over the years.

Overall, a financial leverage ratio of around 1.3 indicates a moderate level of leverage, which may be considered acceptable depending on the industry and the company's risk tolerance. Investors and creditors typically look at this ratio to assess the company's financial risk and stability. In the case of Old Dominion, the relatively consistent ratio suggests a balanced approach to debt management.