Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Old Dominion Freight Line Inc., solvency ratios
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).
- Debt Ratios
- The debt to equity ratio remained very low and relatively stable from 2018 to 2022, fluctuating between 0.01 and 0.03, indicating minimal reliance on debt relative to equity. Including operating lease liabilities, this ratio exhibited an increase from 0.02 in 2018 to a peak of 0.06 in 2020 and 2021, before moderating slightly to 0.05 in 2022. Similarly, debt to capital and debt to assets ratios without operating leases stayed consistently low around 0.01 to 0.03, while their counterparts including operating lease liabilities showed a rise from 0.02-0.03 in 2018-2019 to about 0.05-0.06 in the subsequent years, demonstrating that operating lease obligations represent a notable portion of leveraging.
- Financial Leverage
- The financial leverage ratio remained steady around 1.3 throughout the five-year period, reflecting a stable proportion of total assets financed by equity. There was no significant trend upward or downward, suggesting consistent capital structure usage.
- Interest Coverage
- Interest coverage exhibited considerable volatility over the timeframe. It dropped sharply from an exceptionally high level of 4315.88 in 2018 to 2186.54 in 2019, then further declined to 325 in 2020. The ratio rebounded substantially to 804.95 in 2021 and increased again to 1179.09 in 2022. Despite fluctuations, the interest coverage ratio remained well above typical risk thresholds, indicating strong ability to meet interest obligations even during the downturn in 2020.
- Fixed Charge Coverage
- Fixed charge coverage steadily declined from 64.77 in 2018 to 48.99 in 2020. Subsequently, it improved significantly, reaching 67.99 in 2021 and rising further to 86.39 in 2022. This pattern suggests an initial tightening of fixed charge coverage followed by enhanced earnings capacity or reduced fixed costs in the latter years.
- Overall Analysis
- The company maintained a very conservative debt profile over the analyzed period, with low leverage ratios both including and excluding operating lease liabilities. Operating lease liabilities influenced reported leverage ratios moderately, peaking around 2020-2021. Financial leverage remained stable, underscoring consistent capital structure management. Although interest coverage showed volatility likely impacted by external factors in 2020, it remained robust across all years, indicating strong earnings relative to interest expense. The trend in fixed charge coverage aligns with this, showing temporary compression followed by recovery and improvement, reinforcing the view of financial resilience and effective operational management.
Debt Ratios
Coverage Ratios
Debt to Equity
Old Dominion Freight Line Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current maturities of long-term debt | 20,000) | —) | —) | —) | —) | |
| Long-term debt, excluding current maturities | 79,963) | 99,947) | 99,931) | 45,000) | 45,000) | |
| Total debt | 99,963) | 99,947) | 99,931) | 45,000) | 45,000) | |
| Shareholders’ equity | 3,652,917) | 3,679,807) | 3,326,288) | 3,080,717) | 2,680,483) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.03 | 0.03 | 0.03 | 0.01 | 0.02 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| FedEx Corp. | 0.81 | 0.86 | 1.20 | — | — | |
| Uber Technologies Inc. | 1.32 | 0.66 | 0.64 | — | — | |
| Union Pacific Corp. | 2.74 | 2.10 | 1.58 | — | — | |
| United Airlines Holdings Inc. | 4.68 | 7.03 | 4.75 | — | — | |
| United Parcel Service Inc. | 0.99 | 1.54 | 37.53 | — | — | |
| Debt to Equity, Sector | ||||||
| Transportation | 1.62 | 1.63 | 2.02 | — | — | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.42 | 1.37 | 1.82 | — | — | |
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).
1 2022 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 99,963 ÷ 3,652,917 = 0.03
2 Click competitor name to see calculations.
- Total debt
- The total debt remained constant at 45,000 thousand USD from 2018 through 2019, then more than doubled in 2020, reaching approximately 99,931 thousand USD. From 2020 to 2022, the total debt remained relatively stable, fluctuating marginally around 99,947 to 99,963 thousand USD.
- Shareholders’ equity
- Shareholders’ equity demonstrated a consistent upward trend over the five-year period. Starting at approximately 2,680,483 thousand USD in 2018, it increased steadily each year, peaking in 2021 at roughly 3,679,807 thousand USD before a slight decrease to 3,652,917 thousand USD in 2022.
- Debt to equity ratio
- The debt to equity ratio was very low throughout the period, indicating low leverage relative to equity. It decreased from 0.02 in 2018 to 0.01 in 2019, then rose to 0.03 in 2020 and remained stable at that level through 2022. This suggests that while debt increased notably from 2020 onwards, the significant growth in equity maintained the ratio at a low and stable level.
- Overall trends and insights
- The company maintained a conservative capital structure with low reliance on debt. The substantial increase in debt in 2020 coincided with continued growth in equity, preserving a low debt to equity ratio. Shareholders’ equity grew robustly during the period, reflecting positive retained earnings or equity injections. The stability in ratios suggests effective balancing of debt and equity financing.
Debt to Equity (including Operating Lease Liability)
Old Dominion Freight Line Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current maturities of long-term debt | 20,000) | —) | —) | —) | —) | |
| Long-term debt, excluding current maturities | 79,963) | 99,947) | 99,931) | 45,000) | 45,000) | |
| Total debt | 99,963) | 99,947) | 99,931) | 45,000) | 45,000) | |
| Current operating lease liabilities (presented within Other accrued liabilities) | 17,300) | 14,000) | 13,000) | 10,400) | —) | |
| Non-current operating lease liabilities (presented within Other non-current liabilities) | 80,800) | 88,800) | 93,300) | 56,100) | —) | |
| Total debt (including operating lease liability) | 198,063) | 202,747) | 206,231) | 111,500) | 45,000) | |
| Shareholders’ equity | 3,652,917) | 3,679,807) | 3,326,288) | 3,080,717) | 2,680,483) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.05 | 0.06 | 0.06 | 0.04 | 0.02 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| FedEx Corp. | 1.49 | 1.51 | 1.97 | — | — | |
| Uber Technologies Inc. | 1.58 | 0.79 | 0.78 | — | — | |
| Union Pacific Corp. | 2.87 | 2.22 | 1.67 | — | — | |
| United Airlines Holdings Inc. | 5.41 | 8.17 | 5.69 | — | — | |
| United Parcel Service Inc. | 1.19 | 1.79 | 42.24 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Transportation | 2.03 | 2.02 | 2.51 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.59 | 1.54 | 2.00 | — | — | |
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).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 198,063 ÷ 3,652,917 = 0.05
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt increased significantly from 45,000 thousand USD in 2018 to a peak of 206,231 thousand USD in 2020. After 2020, the debt level slightly declined but remained elevated in comparison to 2018, with figures of 202,747 thousand USD in 2021 and 198,063 thousand USD in 2022. This trend indicates a substantial rise in leverage from 2018 to 2020 followed by a modest reduction in subsequent years.
- Shareholders’ equity
- Shareholders' equity showed consistent growth throughout the period. Starting at 2,680,483 thousand USD in 2018, equity increased each year, reaching 3,652,917 thousand USD by the end of 2022. This steady increase suggests continued accumulation of retained earnings or capital infusions, enhancing the company’s net asset base over time.
- Debt to equity ratio (including operating lease liability)
- The debt to equity ratio, while remaining low, rose from 0.02 in 2018 to 0.06 in 2020 and 2021, indicating a tripling of debt relative to equity in this timeframe. However, there was a slight decrease to 0.05 in 2022, reflecting a marginal reduction in leverage relative to equity. Overall, the ratio reflects prudent financial leverage, with debt levels remaining a small proportion of equity despite the increase in absolute debt.
Debt to Capital
Old Dominion Freight Line Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current maturities of long-term debt | 20,000) | —) | —) | —) | —) | |
| Long-term debt, excluding current maturities | 79,963) | 99,947) | 99,931) | 45,000) | 45,000) | |
| Total debt | 99,963) | 99,947) | 99,931) | 45,000) | 45,000) | |
| Shareholders’ equity | 3,652,917) | 3,679,807) | 3,326,288) | 3,080,717) | 2,680,483) | |
| Total capital | 3,752,880) | 3,779,754) | 3,426,219) | 3,125,717) | 2,725,483) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.03 | 0.03 | 0.03 | 0.01 | 0.02 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| FedEx Corp. | 0.45 | 0.46 | 0.55 | — | — | |
| Uber Technologies Inc. | 0.57 | 0.40 | 0.39 | — | — | |
| Union Pacific Corp. | 0.73 | 0.68 | 0.61 | — | — | |
| United Airlines Holdings Inc. | 0.82 | 0.88 | 0.83 | — | — | |
| United Parcel Service Inc. | 0.50 | 0.61 | 0.97 | — | — | |
| Debt to Capital, Sector | ||||||
| Transportation | 0.62 | 0.62 | 0.67 | — | — | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.59 | 0.58 | 0.65 | — | — | |
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).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 99,963 ÷ 3,752,880 = 0.03
2 Click competitor name to see calculations.
- Total Debt
- The total debt remained stable at 45,000 thousand USD for the first two years, 2018 and 2019. It then more than doubled to approximately 99,931 thousand USD in 2020 and remained roughly constant through 2021 and 2022, indicating a significant increase in leverage starting in 2020 with no further notable changes thereafter.
- Total Capital
- Total capital showed consistent growth over the five-year period. It increased from 2,725,483 thousand USD in 2018 to a peak of 3,779,754 thousand USD in 2021, followed by a slight decline to 3,752,880 thousand USD in 2022. This trend reflects steady expansion of the company's capital base, with minor contraction occurring in the last recorded year.
- Debt to Capital Ratio
- The debt to capital ratio was very low at 0.02 in 2018, then declined to 0.01 in 2019, indicating reduced reliance on debt relative to total capital. However, the ratio increased to 0.03 starting in 2020 and remained stable through 2021 and 2022. This change aligns with the increase in total debt observed starting in 2020, signifying a moderate rise in financial leverage while still maintaining a relatively low proportion of debt in the capital structure.
Debt to Capital (including Operating Lease Liability)
Old Dominion Freight Line Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current maturities of long-term debt | 20,000) | —) | —) | —) | —) | |
| Long-term debt, excluding current maturities | 79,963) | 99,947) | 99,931) | 45,000) | 45,000) | |
| Total debt | 99,963) | 99,947) | 99,931) | 45,000) | 45,000) | |
| Current operating lease liabilities (presented within Other accrued liabilities) | 17,300) | 14,000) | 13,000) | 10,400) | —) | |
| Non-current operating lease liabilities (presented within Other non-current liabilities) | 80,800) | 88,800) | 93,300) | 56,100) | —) | |
| Total debt (including operating lease liability) | 198,063) | 202,747) | 206,231) | 111,500) | 45,000) | |
| Shareholders’ equity | 3,652,917) | 3,679,807) | 3,326,288) | 3,080,717) | 2,680,483) | |
| Total capital (including operating lease liability) | 3,850,980) | 3,882,554) | 3,532,519) | 3,192,217) | 2,725,483) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.05 | 0.05 | 0.06 | 0.03 | 0.02 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| FedEx Corp. | 0.60 | 0.60 | 0.66 | — | — | |
| Uber Technologies Inc. | 0.61 | 0.44 | 0.44 | — | — | |
| Union Pacific Corp. | 0.74 | 0.69 | 0.63 | — | — | |
| United Airlines Holdings Inc. | 0.84 | 0.89 | 0.85 | — | — | |
| United Parcel Service Inc. | 0.54 | 0.64 | 0.98 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Transportation | 0.67 | 0.67 | 0.71 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.61 | 0.61 | 0.67 | — | — | |
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).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 198,063 ÷ 3,850,980 = 0.05
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
-
The total debt exhibited a significant increase from 2018 to 2020, rising from 45,000 thousand US dollars to a peak of 206,231 thousand US dollars in 2020. After this peak, the debt levels showed a slight decline in the following years, amounting to 202,747 thousand US dollars in 2021 and 198,063 thousand US dollars in 2022.
- Total Capital (including operating lease liability)
-
Total capital demonstrated consistent growth throughout the period, expanding from 2,725,483 thousand US dollars in 2018 to 3,850,980 thousand US dollars in 2022. The most notable increases occurred between 2018 and 2021, with the capital reaching its highest point in 2021 before a marginal decline in 2022.
- Debt to Capital Ratio (including operating lease liability)
-
The debt-to-capital ratio remained relatively low over the evaluated years, starting at 0.02 in 2018 and increasing to a peak of 0.06 in 2020. This increase aligns with the rise in total debt observed during that year. Subsequently, the ratio declined slightly, stabilizing at 0.05 in 2021 and 2022, indicating a controlled and modest use of debt relative to capital.
- Overall Analysis
-
The financial data indicates a strategic increase in leverage up to 2020, reflected in the rising debt levels and debt-to-capital ratio. However, the company maintained a strong capital base throughout the period, with capital growth outpacing increases in debt. The slight reduction of debt after 2020, coupled with the stabilization of the debt-to-capital ratio, suggests a cautious approach to debt management while supporting capital expansion.
Debt to Assets
Old Dominion Freight Line Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current maturities of long-term debt | 20,000) | —) | —) | —) | —) | |
| Long-term debt, excluding current maturities | 79,963) | 99,947) | 99,931) | 45,000) | 45,000) | |
| Total debt | 99,963) | 99,947) | 99,931) | 45,000) | 45,000) | |
| Total assets | 4,838,610) | 4,821,544) | 4,369,410) | 3,995,568) | 3,545,283) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.02 | 0.02 | 0.02 | 0.01 | 0.01 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| FedEx Corp. | 0.24 | 0.25 | 0.30 | — | — | |
| Uber Technologies Inc. | 0.30 | 0.25 | 0.24 | — | — | |
| Union Pacific Corp. | 0.51 | 0.47 | 0.43 | — | — | |
| United Airlines Holdings Inc. | 0.48 | 0.52 | 0.48 | — | — | |
| United Parcel Service Inc. | 0.28 | 0.32 | 0.40 | — | — | |
| Debt to Assets, Sector | ||||||
| Transportation | 0.36 | 0.36 | 0.38 | — | — | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.31 | 0.30 | 0.33 | — | — | |
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).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 99,963 ÷ 4,838,610 = 0.02
2 Click competitor name to see calculations.
- Total Debt
- The total debt remained stable at $45,000 thousand for the years 2018 and 2019, before increasing significantly in 2020 to approximately $99,931 thousand. This higher level of debt was maintained relatively consistently through 2021 and 2022, with minor increases to $99,947 thousand and $99,963 thousand respectively. This suggests a strategic decision to increase leverage as of 2020 and maintain this higher level thereafter.
- Total Assets
- Total assets exhibited a consistent upward trend over the five-year period. Beginning at approximately $3,545,283 thousand in 2018, assets increased each year, reaching $4,995,568 thousand in 2019, $4,369,410 thousand in 2020, $4,821,544 thousand in 2021, and $4,838,610 thousand in 2022. The steady growth in assets reflects ongoing investment and possible expansion activities.
- Debt to Assets Ratio
- The debt to assets ratio remained quite low throughout the period, starting at 0.01 in both 2018 and 2019. This ratio increased to 0.02 in 2020 and stabilized at this level through 2021 and 2022. Despite the near doubling of the total debt in 2020, the debt to asset ratio indicates that debt levels remain modest in relation to total assets, suggesting that the company maintains a conservative leverage position relative to its asset base.
Debt to Assets (including Operating Lease Liability)
Old Dominion Freight Line Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current maturities of long-term debt | 20,000) | —) | —) | —) | —) | |
| Long-term debt, excluding current maturities | 79,963) | 99,947) | 99,931) | 45,000) | 45,000) | |
| Total debt | 99,963) | 99,947) | 99,931) | 45,000) | 45,000) | |
| Current operating lease liabilities (presented within Other accrued liabilities) | 17,300) | 14,000) | 13,000) | 10,400) | —) | |
| Non-current operating lease liabilities (presented within Other non-current liabilities) | 80,800) | 88,800) | 93,300) | 56,100) | —) | |
| Total debt (including operating lease liability) | 198,063) | 202,747) | 206,231) | 111,500) | 45,000) | |
| Total assets | 4,838,610) | 4,821,544) | 4,369,410) | 3,995,568) | 3,545,283) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.04 | 0.04 | 0.05 | 0.03 | 0.01 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| FedEx Corp. | 0.43 | 0.44 | 0.49 | — | — | |
| Uber Technologies Inc. | 0.36 | 0.29 | 0.29 | — | — | |
| Union Pacific Corp. | 0.53 | 0.50 | 0.45 | — | — | |
| United Airlines Holdings Inc. | 0.55 | 0.60 | 0.57 | — | — | |
| United Parcel Service Inc. | 0.33 | 0.37 | 0.44 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Transportation | 0.45 | 0.45 | 0.47 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.34 | 0.34 | 0.36 | — | — | |
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).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 198,063 ÷ 4,838,610 = 0.04
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends in the company's capital structure and overall asset base over the five-year period under review.
- Total Debt (including operating lease liability)
- The total debt showed a significant increase from 45 million USD in 2018 to 111.5 million USD in 2019, representing more than a doubling within a single year. This upward trajectory continued into 2020, with debt reaching approximately 206.2 million USD. Following this peak, total debt slightly declined to roughly 202.7 million USD in 2021 and further to about 198.1 million USD in 2022. Despite this recent partial reduction, the 2022 level remains substantially higher than the initial 2018 figure, indicating a sustained higher debt burden in recent years.
- Total Assets
- The asset base exhibited consistent growth throughout the period. Starting at approximately 3.55 billion USD in 2018, assets increased steadily year-over-year, reaching nearly 4.84 billion USD by the end of 2022. This represents an overall growth of about 36% across the five years, indicating expansion or reinvestment in assets. The growth pace appeared relatively stable without significant fluctuations.
- Debt to Assets Ratio (including operating lease liability)
- The debt to assets ratio began at a very low 0.01 in 2018, reflecting a minimal leverage position. It rose to 0.03 in 2019 and peaked at 0.05 in 2020, coinciding with the sharp increase in total debt. Subsequently, the ratio slightly decreased to 0.04 in both 2021 and 2022, suggesting a modest deleveraging or stabilization of leverage relative to asset growth in the past two years. Overall, while leverage increased over the period, the ratio remains low, indicating a conservative capital structure in the context of the asset base.
In summary, the company managed a substantial increase in debt, particularly between 2018 and 2020, while simultaneously growing its asset base consistently. The leverage ratio increased but remained at a conservative level, showcasing prudent financial management despite elevated debt levels post-2018. The partial reduction in debt after 2020 suggests efforts to optimize capital structure or reduce financial risk.
Financial Leverage
Old Dominion Freight Line Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 4,838,610) | 4,821,544) | 4,369,410) | 3,995,568) | 3,545,283) | |
| Shareholders’ equity | 3,652,917) | 3,679,807) | 3,326,288) | 3,080,717) | 2,680,483) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.32 | 1.31 | 1.31 | 1.30 | 1.32 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| FedEx Corp. | 3.45 | 3.43 | 4.02 | — | — | |
| Uber Technologies Inc. | 4.37 | 2.68 | 2.71 | — | — | |
| Union Pacific Corp. | 5.38 | 4.49 | 3.68 | — | — | |
| United Airlines Holdings Inc. | 9.77 | 13.56 | 9.99 | — | — | |
| United Parcel Service Inc. | 3.59 | 4.87 | 94.99 | — | — | |
| Financial Leverage, Sector | ||||||
| Transportation | 4.53 | 4.48 | 5.38 | — | — | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.65 | 4.52 | 5.49 | — | — | |
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).
1 2022 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 4,838,610 ÷ 3,652,917 = 1.32
2 Click competitor name to see calculations.
The financial data over the five-year period reveals several notable trends regarding the company's asset base, equity, and leverage.
- Total Assets
- The total assets consistently increased each year, starting from approximately 3.55 billion USD at the end of 2018 and reaching nearly 4.84 billion USD by the end of 2022. This steady growth indicates expanding resource capacity or investments over the period.
- Shareholders’ Equity
- Shareholders’ equity also exhibited a continuous upward trajectory, rising from about 2.68 billion USD in 2018 to roughly 3.65 billion USD in 2022. This increase aligns with the asset growth, suggesting retained earnings or additional equity financing contributed to the strengthened capital base.
- Financial Leverage
- The financial leverage ratio remained relatively stable throughout the five years, fluctuating slightly around 1.3 with minimal variation (ranging between 1.30 and 1.32). This stability indicates that the company maintained a consistent balance between debt and equity financing, without significant changes in its capital structure.
In summary, the company demonstrated consistent asset and equity growth, suggesting expanding operations and reinforced financial strength. Meanwhile, the steady financial leverage ratio reflects prudent management of debt relative to equity during the period under review.
Interest Coverage
Old Dominion Freight Line Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 1,377,159) | 1,034,375) | 672,682) | 615,518) | 605,668) | |
| Add: Income tax expense | 464,190) | 354,048) | 228,682) | 208,431) | 209,845) | |
| Add: Interest expense | 1,563) | 1,727) | 2,782) | 377) | 189) | |
| Earnings before interest and tax (EBIT) | 1,842,912) | 1,390,150) | 904,146) | 824,326) | 815,702) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 1,179.09 | 804.95 | 325.00 | 2,186.54 | 4,315.88 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| FedEx Corp. | 8.11 | 9.42 | 3.48 | — | — | |
| Uber Technologies Inc. | -15.49 | -1.20 | -14.24 | — | — | |
| Union Pacific Corp. | 8.14 | 8.33 | 7.12 | — | — | |
| United Airlines Holdings Inc. | 1.59 | -0.62 | -7.89 | — | — | |
| United Parcel Service Inc. | 22.06 | 24.91 | 3.63 | — | — | |
| Interest Coverage, Sector | ||||||
| Transportation | 5.17 | 6.98 | -0.34 | — | — | |
| Interest Coverage, Industry | ||||||
| Industrials | 4.98 | 5.14 | 1.25 | — | — | |
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).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,842,912 ÷ 1,563 = 1,179.09
2 Click competitor name to see calculations.
- Earnings before Interest and Tax (EBIT)
- The EBIT demonstrates a consistent upward trend across the five-year period. Starting from approximately 815.7 million USD in 2018, it gradually increased to around 824.3 million USD in 2019 and then to about 904.1 million USD in 2020. A significant jump is observed in 2021, with EBIT reaching nearly 1.39 billion USD, followed by a further increase in 2022 to approximately 1.84 billion USD. This indicates robust operational growth and possibly improved profitability or scale of operations during this period.
- Interest Expense
- Interest expense figures show some variation but remain relatively low compared to EBIT values. The expense was minimal at 189 thousand USD in 2018 and increased to 377 thousand USD in 2019. In 2020, interest expense rose sharply to 2.782 million USD, suggesting increased borrowing or higher interest rates during this year. However, it decreased to 1.727 million USD in 2021 and slightly declined further to 1.563 million USD in 2022. The fluctuations indicate some variability in financing costs but overall remain manageable relative to earnings.
- Interest Coverage Ratio
- The interest coverage ratio, which measures the company's ability to meet interest obligations from EBIT, shows a significant decline from extraordinarily high values of 4315.88 in 2018 and 2186.54 in 2019 to a much lower 325 in 2020. Despite this drop, the ratio remains strong, reflecting ample earnings to cover interest expenses. The ratio improved markedly in 2021 to 804.95 and further increased to 1179.09 in 2022, suggesting improved financial stability or decreased interest burden relative to earnings in the later years.
Fixed Charge Coverage
Old Dominion Freight Line Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 1,377,159) | 1,034,375) | 672,682) | 615,518) | 605,668) | |
| Add: Income tax expense | 464,190) | 354,048) | 228,682) | 208,431) | 209,845) | |
| Add: Interest expense | 1,563) | 1,727) | 2,782) | 377) | 189) | |
| Earnings before interest and tax (EBIT) | 1,842,912) | 1,390,150) | 904,146) | 824,326) | 815,702) | |
| Add: Aggregate expense under operating leases | 20,000) | 19,000) | 16,000) | 14,700) | 12,600) | |
| Earnings before fixed charges and tax | 1,862,912) | 1,409,150) | 920,146) | 839,026) | 828,302) | |
| Interest expense | 1,563) | 1,727) | 2,782) | 377) | 189) | |
| Aggregate expense under operating leases | 20,000) | 19,000) | 16,000) | 14,700) | 12,600) | |
| Fixed charges | 21,563) | 20,727) | 18,782) | 15,077) | 12,789) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 86.39 | 67.99 | 48.99 | 55.65 | 64.77 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| FedEx Corp. | 2.29 | 2.83 | 1.50 | — | — | |
| Uber Technologies Inc. | -9.72 | -0.36 | -6.43 | — | — | |
| Union Pacific Corp. | 6.64 | 6.81 | 5.79 | — | — | |
| United Airlines Holdings Inc. | 1.38 | -0.01 | -3.58 | — | — | |
| United Parcel Service Inc. | 11.30 | 12.66 | 2.31 | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Transportation | 2.98 | 3.86 | 0.41 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 3.30 | 3.44 | 1.12 | — | — | |
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).
1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,862,912 ÷ 21,563 = 86.39
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax demonstrate a consistent upward trend over the five-year period. Starting at approximately 828 million USD in 2018, there was a marginal increase to 839 million USD in 2019. Subsequently, the figure rose to around 920 million USD in 2020, followed by a more pronounced increase to approximately 1.41 billion USD in 2021. The growth continued strongly into 2022, reaching about 1.86 billion USD. This pattern indicates sustained profitability growth with acceleration in the later years.
- Fixed charges
- Fixed charges increased steadily but at a much slower rate compared to earnings before fixed charges and tax. From around 12.8 million USD in 2018, fixed charges rose to roughly 15.1 million USD in 2019, then to about 18.8 million USD in 2020, followed by incremental increases to approximately 20.7 million USD in 2021 and 21.6 million USD in 2022. The gradual increase suggests controlled growth in fixed financial obligations relative to earnings expansion.
- Fixed charge coverage
- The fixed charge coverage ratio exhibited some variability but overall improved over the period. The ratio started at 64.77 in 2018, then declined over the next two years to 55.65 in 2019 and 48.99 in 2020, indicating a reduced ability to cover fixed charges during those years. However, this trend reversed significantly with the ratio rising to 67.99 in 2021 and further to 86.39 in 2022, reflecting strengthened capacity to meet fixed financial obligations from earnings. The improvement in recent years aligns with the substantial increase in earnings before fixed charges and tax.