Return on Equity (ROE)
since 2005
Calculation
Old Dominion Freight Line Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 37.70% | = | 100 | × | 1,377,159) | ÷ | 3,652,917) |
| Dec 31, 2021 | 28.11% | = | 100 | × | 1,034,375) | ÷ | 3,679,807) |
| Dec 31, 2020 | 20.22% | = | 100 | × | 672,682) | ÷ | 3,326,288) |
| Dec 31, 2019 | 19.98% | = | 100 | × | 615,518) | ÷ | 3,080,717) |
| Dec 31, 2018 | 22.60% | = | 100 | × | 605,668) | ÷ | 2,680,483) |
| Dec 31, 2017 | 20.37% | = | 100 | × | 463,774) | ÷ | 2,276,854) |
| Dec 31, 2016 | 15.98% | = | 100 | × | 295,765) | ÷ | 1,851,158) |
| Dec 31, 2015 | 18.09% | = | 100 | × | 304,690) | ÷ | 1,684,637) |
| Dec 31, 2014 | 17.91% | = | 100 | × | 267,514) | ÷ | 1,494,064) |
| Dec 31, 2013 | 16.73% | = | 100 | × | 206,113) | ÷ | 1,232,082) |
| Dec 31, 2012 | 16.52% | = | 100 | × | 169,452) | ÷ | 1,025,969) |
| Dec 31, 2011 | 16.28% | = | 100 | × | 139,470) | ÷ | 856,519) |
| Dec 31, 2010 | 11.31% | = | 100 | × | 75,651) | ÷ | 668,649) |
| Dec 31, 2009 | 5.88% | = | 100 | × | 34,871) | ÷ | 593,000) |
| Dec 31, 2008 | 12.30% | = | 100 | × | 68,677) | ÷ | 558,129) |
| Dec 31, 2007 | 14.68% | = | 100 | × | 71,832) | ÷ | 489,452) |
| Dec 31, 2006 | 17.38% | = | 100 | × | 72,569) | ÷ | 417,620) |
| Dec 31, 2005 | 15.50% | = | 100 | × | 53,475) | ÷ | 345,051) |
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
Financial performance from 2005 to 2022 reveals a substantial long-term growth trajectory in both absolute profitability and capital efficiency. Although the period included a significant contraction in the late 2000s, the subsequent years demonstrate a consistent and accelerating increase in the return generated on shareholders' equity.
- Return on Equity (ROE) Trends and Volatility
- Between 2005 and 2008, ROE remained relatively stable, fluctuating between 12.30% and 17.38%. A sharp decline occurred in 2009, with ROE dropping to a period low of 5.88%. This was followed by a recovery phase starting in 2010, with the ratio returning to the 15% to 18% range by 2011 and maintaining that stability through 2016.
- Accelerated Capital Efficiency
- A period of rapid expansion in ROE is observed from 2017 to 2022. The ratio climbed from 20.37% in 2017 to 37.70% by 2022. This upward trend suggests a significant increase in the company's ability to convert equity investments into profit, particularly in the final two years of the analyzed period.
- Net Income and Equity Growth Relationship
- Net income grew exponentially over the seventeen-year span, increasing from US$ 53.4 million in 2005 to US$ 1.37 billion in 2022. While shareholders' equity also expanded steadily from US$ 345 million to US$ 3.65 billion, the growth rate of net income significantly outpaced the growth rate of the equity base. This divergence is most evident between 2020 and 2022, where net income nearly doubled while equity remained relatively flat, directly resulting in the surge of ROE to 37.70%.
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Comparison to Competitors
Old Dominion Freight Line Inc., ROE, 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 | 37.70% | 15.34% | -124.54% | 57.54% | 10.69% | 58.36% |
| Dec 31, 2021 | 28.11% | 21.64% | -3.43% | 46.06% | -39.05% | 90.44% |
| Dec 31, 2020 | 20.22% | 7.03% | -55.18% | 31.54% | -118.61% | 204.41% |
| Dec 31, 2019 | 19.98% | 3.04% | -59.94% | 32.65% | 26.09% | 135.90% |
| Dec 31, 2018 | 22.60% | 23.55% | — | 29.21% | 21.30% | 158.59% |
| Dec 31, 2017 | 20.37% | 18.65% | — | 43.10% | 24.20% | 491.00% |
| Dec 31, 2016 | 15.98% | 13.20% | — | 21.24% | 26.13% | 847.16% |
| Dec 31, 2015 | 18.09% | 7.00% | — | 23.05% | 81.86% | 196.11% |
| Dec 31, 2014 | 17.91% | 13.73% | — | 24.45% | 47.25% | 141.62% |
| Dec 31, 2013 | 16.73% | 8.97% | — | 20.67% | 19.14% | 67.53% |
| Dec 31, 2012 | 16.52% | 13.80% | — | 19.84% | -150.31% | 17.34% |
| Dec 31, 2011 | 16.28% | 9.54% | — | 17.72% | 46.51% | 54.07% |
| Dec 31, 2010 | 11.31% | 8.57% | — | 15.65% | 14.65% | 43.71% |
| Dec 31, 2009 | 5.88% | 0.72% | — | 11.20% | — | 28.20% |
| Dec 31, 2008 | 12.30% | 7.74% | — | 15.14% | — | 44.29% |
| Dec 31, 2007 | 14.68% | 15.93% | — | 11.90% | 16.67% | 3.14% |
| Dec 31, 2006 | 17.38% | 15.69% | — | 10.49% | 1,064.99% | 27.14% |
| Dec 31, 2005 | 15.50% | 15.11% | — | 7.49% | — | 22.92% |
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).
Comparison to Sector (Transportation)
Old Dominion Freight Line Inc., ROE, long-term trends, comparison to sector (transportation)
| Old Dominion Freight Line Inc. | Transportation | |
|---|---|---|
| Dec 31, 2022 | 37.70% | 19.64% |
| Dec 31, 2021 | 28.11% | 30.78% |
| Dec 31, 2020 | 20.22% | -10.82% |
| Dec 31, 2019 | 19.98% | 8.33% |
| Dec 31, 2018 | 22.60% | 33.03% |
| Dec 31, 2017 | 20.37% | 40.90% |
| Dec 31, 2016 | 15.98% | 27.46% |
| Dec 31, 2015 | 18.09% | 38.20% |
| Dec 31, 2014 | 17.91% | 27.90% |
| Dec 31, 2013 | 16.73% | 22.65% |
| Dec 31, 2012 | 16.52% | 15.25% |
| Dec 31, 2011 | 16.28% | 22.02% |
| Dec 31, 2010 | 11.31% | 18.67% |
| Dec 31, 2009 | 5.88% | 9.88% |
| Dec 31, 2008 | 12.30% | 3.26% |
| Dec 31, 2007 | 14.68% | 10.87% |
| Dec 31, 2006 | 17.38% | 68.59% |
| Dec 31, 2005 | 15.50% | -101.45% |
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).
Comparison to Industry (Industrials)
Old Dominion Freight Line Inc., ROE, long-term trends, comparison to industry (industrials)
| Old Dominion Freight Line Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 37.70% | 15.38% |
| Dec 31, 2021 | 28.11% | 15.38% |
| Dec 31, 2020 | 20.22% | 0.24% |
| Dec 31, 2019 | 19.98% | 14.56% |
| Dec 31, 2018 | 22.60% | 17.95% |
| Dec 31, 2017 | 20.37% | 18.24% |
| Dec 31, 2016 | 15.98% | 21.69% |
| Dec 31, 2015 | 18.09% | 16.11% |
| Dec 31, 2014 | 17.91% | 19.68% |
| Dec 31, 2013 | 16.73% | 16.40% |
| Dec 31, 2012 | 16.52% | 17.20% |
| Dec 31, 2011 | 16.28% | 20.10% |
| Dec 31, 2010 | 11.31% | 16.41% |
| Dec 31, 2009 | 5.88% | 12.84% |
| Dec 31, 2008 | 12.30% | 20.74% |
| Dec 31, 2007 | 14.68% | 20.36% |
| Dec 31, 2006 | 17.38% | 32.16% |
| Dec 31, 2005 | 15.50% | 7.80% |
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).