Operating Profit Margin
since 2005
Calculation
Old Dominion Freight Line Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Revenue from operations1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 29.40% | = | 100 | × | 1,840,632) | ÷ | 6,260,077) |
| Dec 31, 2021 | 26.47% | = | 100 | × | 1,391,602) | ÷ | 5,256,328) |
| Dec 31, 2020 | 22.59% | = | 100 | × | 906,882) | ÷ | 4,015,129) |
| Dec 31, 2019 | 19.92% | = | 100 | × | 818,706) | ÷ | 4,109,111) |
| Dec 31, 2018 | 20.21% | = | 100 | × | 817,051) | ÷ | 4,043,695) |
| Dec 31, 2017 | 17.15% | = | 100 | × | 575,886) | ÷ | 3,358,112) |
| Dec 31, 2016 | 16.17% | = | 100 | × | 483,835) | ÷ | 2,991,517) |
| Dec 31, 2015 | 16.76% | = | 100 | × | 498,240) | ÷ | 2,972,442) |
| Dec 31, 2014 | 15.83% | = | 100 | × | 441,307) | ÷ | 2,787,897) |
| Dec 31, 2013 | 14.48% | = | 100 | × | 338,438) | ÷ | 2,337,648) |
| Dec 31, 2012 | 13.52% | = | 100 | × | 285,254) | ÷ | 2,110,483) |
| Dec 31, 2011 | 12.43% | = | 100 | × | 234,072) | ÷ | 1,882,541) |
| Dec 31, 2010 | 9.30% | = | 100 | × | 137,739) | ÷ | 1,480,998) |
| Dec 31, 2009 | 5.65% | = | 100 | × | 70,391) | ÷ | 1,245,005) |
| Dec 31, 2008 | 8.39% | = | 100 | × | 129,070) | ÷ | 1,537,724) |
| Dec 31, 2007 | 9.27% | = | 100 | × | 129,937) | ÷ | 1,401,542) |
| Dec 31, 2006 | 10.20% | = | 100 | × | 130,485) | ÷ | 1,279,431) |
| Dec 31, 2005 | 9.19% | = | 100 | × | 97,585) | ÷ | 1,061,403) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The operating profit margin demonstrates a strong long-term expansion trend, evolving from single-digit percentages in 2005 to nearly 30% by 2022. While there was a period of volatility in the late 2000s, the subsequent decade was characterized by consistent and accelerating margin growth.
- Early Performance and Volatility (2005–2009)
- Between 2005 and 2008, the operating profit margin remained relatively stable, oscillating between 8.39% and 10.20%. A significant contraction occurred in 2009, where the margin dropped to a period low of 5.65%, coinciding with a decrease in total revenue from operations.
- Recovery and Sustained Growth (2010–2017)
- Beginning in 2010, a recovery phase commenced, with the operating profit margin returning to 9.30%. Over the following seven years, the margin experienced steady growth, climbing to 17.15% by the end of 2017. This period reflects a consistent improvement in the ability to convert revenue into operating profit.
- Accelerated Margin Expansion (2018–2022)
- The final five-year period observed a rapid acceleration in profitability. The margin surpassed the 20% threshold in 2018 and continued to rise sharply, reaching 29.40% by December 31, 2022. This suggests significant operating leverage, as operating income grew at a rate substantially higher than revenue growth during this window.
- Comparative Growth Analysis
- Revenue from operations increased from approximately 1.06 billion to 6.26 billion over the analyzed period. In contrast, operating income grew more aggressively, rising from approximately 97.6 million to 1.84 billion. The disproportionate growth of operating income relative to revenue is the primary driver behind the substantial increase in the overall operating profit margin.
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Comparison to Competitors
Old Dominion Freight Line Inc., operating profit margin, long-term trends, comparison to competitors
| Old Dominion Freight Line Inc. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2022 | 29.40% | 6.68% | -5.75% | 39.87% | 5.20% | 13.05% |
| Dec 31, 2021 | 26.47% | 6.98% | -21.97% | 42.83% | -4.15% | 13.17% |
| Dec 31, 2020 | 22.59% | 3.49% | -43.66% | 40.11% | -41.41% | 9.08% |
| Dec 31, 2019 | 19.92% | 6.41% | -60.76% | 39.40% | 9.94% | 10.52% |
| Dec 31, 2018 | 20.21% | 7.44% | — | 37.30% | 7.97% | 9.77% |
| Dec 31, 2017 | 17.15% | 8.35% | — | 37.95% | 9.27% | 11.43% |
| Dec 31, 2016 | 16.17% | 6.11% | — | 36.47% | 11.87% | 8.98% |
| Dec 31, 2015 | 16.76% | 3.93% | — | 36.91% | 13.64% | 13.14% |
| Dec 31, 2014 | 15.83% | 7.56% | — | 36.49% | 6.10% | 8.53% |
| Dec 31, 2013 | 14.48% | 5.76% | — | 33.90% | 3.26% | 12.69% |
| Dec 31, 2012 | 13.52% | 7.46% | — | 32.23% | 0.10% | 2.48% |
| Dec 31, 2011 | 12.43% | 6.05% | — | 29.27% | 4.91% | 11.45% |
| Dec 31, 2010 | 9.30% | 5.75% | — | 29.36% | 4.20% | 11.86% |
| Dec 31, 2009 | 5.65% | 2.10% | — | 23.98% | -0.99% | 8.39% |
| Dec 31, 2008 | 8.39% | 5.47% | — | 22.68% | -21.98% | 10.45% |
| Dec 31, 2007 | 9.27% | 9.30% | — | 20.73% | 5.15% | 1.16% |
| Dec 31, 2006 | 10.20% | 9.33% | — | 18.51% | 2.31% | 13.95% |
| Dec 31, 2005 | 9.19% | 8.42% | — | 13.22% | -1.26% | 14.43% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).