Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Old Dominion Freight Line Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Current Ratio
- The current ratio exhibited fluctuations over the analyzed periods. Beginning at 2.19 in the first quarter of 2019, it experienced a decline to 1.92 by the second quarter of 2019, followed by a moderate recovery reaching 2.53 in the third quarter of 2020. The highest value observed was 3.33 at the end of 2020, indicating a peak in short-term liquidity. Subsequently, the ratio trended downward, reaching 1.45 by mid-2023. This overall decline in the recent quarters may suggest a reduction in current assets relative to current liabilities or an increase in current liabilities.
- Quick Ratio
- The quick ratio mirrored the behavior of the current ratio with similar trends albeit at slightly lower levels across the periods, reflecting the relationship between more liquid current assets and current liabilities. The ratio decreased from 2.05 in early 2019 to 1.78 in mid-2019, then increased steadily to a peak of 3.18 by the end of 2020. After this peak, it declined consistently, reaching 1.22 by the second quarter of 2023. This pattern indicates a tightening in the company's immediate liquidity position in recent periods.
- Cash Ratio
- The cash ratio displayed more pronounced volatility compared to the current and quick ratios. Starting at 0.78 in early 2019, the ratio dipped to 0.59 in the second quarter but then rose sharply, peaking at 1.96 in the last quarter of 2020. Thereafter, a notable downward trend occurred, with the ratio decreasing steadily to a low of 0.11 in mid-2023. This decline highlights a significant reduction in the company's cash and cash equivalents relative to its current liabilities, which may indicate a shift in cash management strategy or increased short-term obligations.
Current Ratio
Old Dominion Freight Line Inc., current ratio calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Current assets | 730,609) | 896,950) | 933,740) | 1,111,197) | 1,209,090) | 1,280,957) | 1,383,787) | 1,278,852) | 1,311,115) | 1,223,261) | 1,243,339) | 1,138,496) | 968,570) | 831,006) | 866,834) | 806,978) | 741,420) | 783,878) | ||||||
| Current liabilities | 503,018) | 569,520) | 529,793) | 639,327) | 628,178) | 578,596) | 464,234) | 534,291) | 482,018) | 513,862) | 373,130) | 449,288) | 494,174) | 428,295) | 366,085) | 396,862) | 386,105) | 358,155) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Current ratio1 | 1.45 | 1.57 | 1.76 | 1.74 | 1.92 | 2.21 | 2.98 | 2.39 | 2.72 | 2.38 | 3.33 | 2.53 | 1.96 | 1.94 | 2.37 | 2.03 | 1.92 | 2.19 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 1.30 | 1.42 | 1.43 | 1.39 | 1.49 | 1.51 | 1.51 | 1.60 | 1.76 | 1.69 | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | 1.23 | 1.06 | 1.04 | 1.04 | 0.98 | 1.00 | 0.98 | 1.19 | 1.01 | 1.14 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 0.71 | 0.65 | 0.72 | 0.77 | 0.66 | 0.71 | 0.62 | 0.75 | 0.86 | 0.76 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 0.91 | 0.91 | 1.00 | 1.03 | 1.04 | 1.04 | 1.19 | 1.36 | 1.37 | 1.13 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 1.32 | 1.34 | 1.22 | 1.39 | 1.47 | 1.52 | 1.42 | 1.48 | 1.39 | 1.29 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 730,609 ÷ 503,018 = 1.45
2 Click competitor name to see calculations.
Over the analyzed periods, the current assets of the company exhibit a fluctuating trend with an overall downward movement in more recent quarters. Initially, from early 2019 to the end of 2020, there is a general increase in current assets, peaking around the fourth quarter of 2020. Following this peak, the current assets show a gradual decrease, notably declining through 2022 and continuing into mid-2023.
Current liabilities demonstrate an increasing trend from early 2019 to the first quarter of 2022, with some fluctuations along the way. This upward trajectory is especially pronounced towards 2022, where current liabilities reach their highest points before retreating somewhat in 2023. Despite this retreat, the liabilities remain elevated compared to the levels observed in 2019.
The current ratio, which measures short-term liquidity by comparing current assets to current liabilities, shows considerable variability. Early in the period, the ratio mostly stays above 2.0, indicating a relatively strong liquidity position. There is a notable spike at the end of 2020 when the current ratio reaches its highest point during the analysis period, reflecting a substantial increase in assets relative to liabilities. However, from 2021 onward, the ratio trends downward steadily, falling below 2.0 in late 2022 and further decreasing through 2023, ultimately reaching its lowest recorded level in the observed dataset. This suggests a weakening liquidity position, with current liabilities increasing proportionally more than current assets in recent quarters.
- Current Assets
- Initially increased through 2020, peaking in late 2020, then declined gradually through 2022 and into mid-2023.
- Current Liabilities
- Generally increased from 2019 to early 2022, hitting peak levels in early 2022 before moderately decreasing in 2023, yet remaining high compared to 2019 figures.
- Current Ratio
- Strong liquidity position early on (above 2.0), with a peak at end of 2020, followed by a consistent decline from 2021 onwards, diminishing to a weaker liquidity position by mid-2023.
Quick Ratio
Old Dominion Freight Line Inc., quick ratio calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Cash and cash equivalents | 55,141) | 207,624) | 186,312) | 216,727) | 196,134) | 262,122) | 462,564) | 339,761) | 484,204) | 351,900) | 401,430) | 420,396) | 518,624) | 356,972) | 403,571) | 322,286) | 228,960) | 280,627) | ||||||
| Short-term investments | —) | 24,807) | 49,355) | 158,829) | 224,391) | 279,183) | 254,433) | 224,899) | 165,254) | 310,193) | 330,274) | 205,294) | —) | —) | —) | —) | —) | —) | ||||||
| Customer receivables, less allowances | 543,767) | 564,490) | 578,648) | 630,370) | 680,096) | 669,042) | 567,474) | 591,783) | 548,749) | 496,125) | 444,653) | 453,346) | 387,260) | 419,128) | 397,579) | 425,850) | 449,984) | 447,242) | ||||||
| Other receivables | 15,620) | 15,389) | 13,743) | 13,327) | 12,665) | 12,347) | 12,410) | 62,266) | 51,307) | 9,553) | 9,569) | 9,578) | 8,525) | 8,485) | 10,586) | 12,225) | 8,161) | 8,091) | ||||||
| Total quick assets | 614,528) | 812,310) | 828,058) | 1,019,253) | 1,113,286) | 1,222,694) | 1,296,881) | 1,218,709) | 1,249,514) | 1,167,771) | 1,185,926) | 1,088,614) | 914,409) | 784,585) | 811,736) | 760,361) | 687,105) | 735,960) | ||||||
| Current liabilities | 503,018) | 569,520) | 529,793) | 639,327) | 628,178) | 578,596) | 464,234) | 534,291) | 482,018) | 513,862) | 373,130) | 449,288) | 494,174) | 428,295) | 366,085) | 396,862) | 386,105) | 358,155) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Quick ratio1 | 1.22 | 1.43 | 1.56 | 1.59 | 1.77 | 2.11 | 2.79 | 2.28 | 2.59 | 2.27 | 3.18 | 2.42 | 1.85 | 1.83 | 2.22 | 1.92 | 1.78 | 2.05 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 1.16 | 1.30 | 1.31 | 1.27 | 1.37 | 1.39 | 1.40 | 1.50 | 1.63 | 1.56 | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | 1.04 | 0.88 | 0.88 | 0.88 | 0.83 | 0.83 | 0.82 | 1.01 | 0.85 | 0.96 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 0.51 | 0.49 | 0.52 | 0.58 | 0.47 | 0.52 | 0.47 | 0.56 | 0.64 | 0.57 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 0.83 | 0.82 | 0.91 | 0.94 | 0.95 | 0.95 | 1.10 | 1.25 | 1.27 | 1.01 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 1.19 | 1.21 | 1.11 | 1.26 | 1.35 | 1.41 | 1.32 | 1.36 | 1.27 | 1.12 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 614,528 ÷ 503,018 = 1.22
2 Click competitor name to see calculations.
- Trend in Total Quick Assets
- The total quick assets exhibit fluctuations over the observed periods with an initial upward movement from early 2019 through late 2020. Peaks occurred notably at the end of 2020, followed by a gradual decline throughout 2022 and into mid-2023. This decline suggests a reduction in highly liquid assets available for meeting immediate obligations in recent quarters.
- Trend in Current Liabilities
- Current liabilities display some variability but show an overall increase from 2019 through 2022, peaking in late 2022. Subsequently, there is a noticeable decline in early 2023, indicating a reduction in short-term obligations or improved management of liabilities during that timeframe.
- Quick Ratio Analysis
- The quick ratio follows a somewhat inconsistent but downward trend after reaching a notable high in late 2020. Initially, the ratio increased steadily from 2019 into 2020, peaking at 3.18, indicative of strong liquidity relative to current liabilities during that period. Afterward, the ratio declined meaningfully through 2022 and continued below 1.5 in the first half of 2023, signaling weakening short-term financial strength. Despite fluctuations, the ratio remains above 1.0, suggesting that quick assets still cover current liabilities, albeit with less cushion compared to previous years.
- Overall Liquidity Insights
- The data indicates that liquidity was strongest toward the end of 2020, characterized by both high quick assets and a robust quick ratio. Since then, there has been a gradual erosion in liquidity levels marked by decreasing quick assets and rising or volatile current liabilities, culminating in a lower quick ratio. This suggests the company might be facing more liquidity risk or a strategic shift in asset or liability management in recent periods.
Cash Ratio
Old Dominion Freight Line Inc., cash ratio calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Cash and cash equivalents | 55,141) | 207,624) | 186,312) | 216,727) | 196,134) | 262,122) | 462,564) | 339,761) | 484,204) | 351,900) | 401,430) | 420,396) | 518,624) | 356,972) | 403,571) | 322,286) | 228,960) | 280,627) | ||||||
| Short-term investments | —) | 24,807) | 49,355) | 158,829) | 224,391) | 279,183) | 254,433) | 224,899) | 165,254) | 310,193) | 330,274) | 205,294) | —) | —) | —) | —) | —) | —) | ||||||
| Total cash assets | 55,141) | 232,431) | 235,667) | 375,556) | 420,525) | 541,305) | 716,997) | 564,660) | 649,458) | 662,093) | 731,704) | 625,690) | 518,624) | 356,972) | 403,571) | 322,286) | 228,960) | 280,627) | ||||||
| Current liabilities | 503,018) | 569,520) | 529,793) | 639,327) | 628,178) | 578,596) | 464,234) | 534,291) | 482,018) | 513,862) | 373,130) | 449,288) | 494,174) | 428,295) | 366,085) | 396,862) | 386,105) | 358,155) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Cash ratio1 | 0.11 | 0.41 | 0.44 | 0.59 | 0.67 | 0.94 | 1.54 | 1.06 | 1.35 | 1.29 | 1.96 | 1.39 | 1.05 | 0.83 | 1.10 | 0.81 | 0.59 | 0.78 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 0.33 | 0.50 | 0.48 | 0.43 | 0.49 | 0.53 | 0.52 | 0.65 | 0.69 | 0.62 | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | 0.75 | 0.58 | 0.56 | 0.61 | 0.55 | 0.55 | 0.55 | 0.85 | 0.69 | 0.81 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 0.16 | 0.17 | 0.18 | 0.22 | 0.13 | 0.17 | 0.17 | 0.23 | 0.26 | 0.24 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 0.75 | 0.73 | 0.82 | 0.85 | 0.86 | 0.86 | 1.01 | 1.15 | 1.17 | 0.92 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 0.54 | 0.58 | 0.42 | 0.64 | 0.70 | 0.74 | 0.60 | 0.68 | 0.63 | 0.50 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 55,141 ÷ 503,018 = 0.11
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations in the liquidity position and current liabilities over the observed periods.
- Total Cash Assets
- The total cash assets exhibited significant volatility during the timeline. Starting at approximately $280.6 million at the end of Q1 2019, the cash balance declined in mid-2019 but then saw a marked increase towards the end of 2020, peaking near $731.7 million at year-end 2020. Subsequently, the cash balance trended downward through 2021 and 2022, reaching a low of approximately $235.7 million at the end of Q4 2022. A sharp decline was observed in early 2023, with cash assets dropping to around $55.1 million by Q2 2023, thus indicating a substantial reduction in liquid resources compared to earlier periods.
- Current Liabilities
- Current liabilities rose consistently from $358.2 million at the beginning of 2019, generally trending upwards to exceed $639.3 million by the end of Q3 2022. Thereafter, a decrease was observed in the final periods, with liabilities declining to approximately $503.0 million by mid-2023. Despite the decrease in the most recent quarters, current liabilities remained substantially higher than levels at the start of the period.
- Cash Ratio
- The cash ratio demonstrated considerable variation, reflecting changes in both cash assets and current liabilities. Beginning at 0.78 in Q1 2019, the ratio decreased mid-year but increased to a peak of 1.96 by year-end 2020. Following this peak, the cash ratio declined steadily, falling below 1.0 in multiple quarters of 2022 and reaching an especially low ratio of 0.11 by mid-2023. This sharp decrease points to a deteriorating short-term liquidity position, with cash levels falling significantly relative to current liabilities.
Overall, the data indicate a fluctuating but generally weakening liquidity position over the observed timeline. While cash assets peaked toward the end of 2020, they have since decreased markedly. The consistent increase in current liabilities through most of the period adds pressure on liquidity, culminating in a notably low cash ratio in the most recent quarters. This trend suggests increased reliance on non-cash current assets or other sources to meet short-term obligations, potentially signaling heightened financial risk in the near term.