Old Dominion Freight Line Inc (ODFL)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,544,000 | 1,640,670 | 1,840,630 | 1,391,600 | 906,882 |
| Interest expense | US$ in thousands | 212 | 464 | 1,563 | 1,727 | 2,782 |
| Interest coverage | 7,283.02 | 3,535.93 | 1,177.63 | 805.79 | 325.98 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,544,000K ÷ $212K
= 7,283.02
Old Dominion Freight Line Inc's interest coverage has exhibited a significant upward trend over the past few years, reflecting the company's ability to comfortably meet its interest obligations with its operating income.
The interest coverage ratio has seen a substantial increase from 325.98 in December 31, 2020, to 7,283.02 in December 31, 2024. This indicates that Old Dominion Freight Line Inc's operating income is more than sufficient to cover its interest expenses by a wide margin.
The consistent improvement in the interest coverage ratio signifies that the company's financial health has strengthened over the years, reducing its risk of default on interest payments. This trend suggests that Old Dominion Freight Line Inc has been effectively managing its debt and generating healthy profits to service its interest obligations.
Overall, the increasing trend in interest coverage ratio demonstrates Old Dominion Freight Line Inc's financial stability and sound operational performance, positioning the company favorably in terms of its ability to manage debt and fulfill its interest commitments.
Peer comparison
Dec 31, 2024