Old Dominion Freight Line Inc (ODFL)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,543,998	1,630,989	1,674,147	1,644,050	1,640,673	1,649,891	1,700,952	1,818,063	1,840,632	1,782,894	1,670,224	1,527,563	1,391,602	1,273,413	1,160,247	993,369	906,882	840,844	788,127	823,450
Interest expense (ttm)	US$ in thousands	212	272	343	301	464	659	1,566	1,690	1,563	1,667	1,041	1,293	1,727	2,189	2,889	3,189	2,782	2,028	960	355
Interest coverage		7,283.01	5,996.28	4,880.90	5,461.96	3,535.93	2,503.63	1,086.18	1,075.78	1,177.63	1,069.52	1,604.44	1,181.41	805.79	581.73	401.61	311.50	325.98	414.62	820.97	2,319.58

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,543,998K ÷ $212K
= 7,283.01

Old Dominion Freight Line Inc's interest coverage ratio has shown significant fluctuations over the past few years. The company's interest coverage stood at 2,319.58 as of March 31, 2020, indicating a very strong ability to cover its interest expenses. However, this ratio decreased to 820.97 by June 30, 2020, and continued to decline over the following quarters, reaching a low of 311.50 by March 31, 2021.

Subsequently, Old Dominion Freight Line Inc's interest coverage started to improve, with the ratio gradually increasing to 1,181.41 by March 31, 2022. The company continued to strengthen its interest coverage with ratios of 1,604.44 and 1,069.52 by June 30, 2022, and September 30, 2022, respectively.

Old Dominion Freight Line Inc's interest coverage ratio saw a significant spike to 2,503.63 by September 30, 2023, indicating a substantial improvement in its ability to cover interest expenses. This improvement was further pronounced as the ratio rose to 3,535.93 by December 31, 2023, and surged to 5,461.96 by March 31, 2024. The trend continued with interest coverage ratios of 4,880.90 and 5,996.28 reported for June 30, 2024, and September 30, 2024, respectively.

The latest available data as of December 31, 2024, shows that Old Dominion Freight Line Inc's interest coverage ratio further increased to 7,283.01, reflecting a robust ability to meet its interest obligations. Overall, the company's interest coverage has shown a mix of fluctuations and improvements, with recent ratios indicating a strong financial position in terms of servicing its debt.