Old Dominion Freight Line Inc (ODFL)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,640,670 | 1,840,630 | 1,391,600 | 906,882 | 818,706 |
| Interest expense | US$ in thousands | 464 | 1,563 | 1,563 | 1,727 | 2,782 |
| Interest coverage | 3,535.93 | 1,177.63 | 890.34 | 525.12 | 294.29 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,640,670K ÷ $464K
= 3,535.93
The interest coverage ratio for Old Dominion Freight Line, Inc. is not available for the years 2020 and 2023. However, for the available years, the company has shown a strong ability to cover its interest expenses from its operating earnings. In 2022, the interest coverage ratio was 1,478.85, indicating a significant cushion to meet interest obligations. This high ratio suggests that the company had substantial operating income relative to its interest expenses during that period. In comparison, the interest coverage ratio for 2021 was 952.61, which also reflects a robust coverage of interest payments. Overall, the trend in the interest coverage ratio over the available years suggests that Old Dominion Freight Line, Inc. has managed its interest obligations efficiently and has had a healthy financial position, at least in terms of covering interest expenses from operating earnings.
Peer comparison
Dec 31, 2023