Analysis of Solvency Ratios
Quarterly Data
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 (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).
- Debt to Equity
- The debt to equity ratio remained consistently low throughout the observed periods, fluctuating between 0.01 and 0.05. There was a slight increase from early 2020, peaking at 0.05 in mid-2020, followed by stabilization around 0.03 in subsequent quarters. The ratio returned to 0.02 by mid-2023, indicating a very conservative use of debt relative to equity.
- Debt to Capital
- This ratio closely mirrors the trend of the debt to equity ratio, beginning at 0.02, slightly rising to 0.05 by mid-2020, and then stabilizing at around 0.03 for most subsequent quarters. The most recent data indicates a small decline back to 0.02, reflecting consistent low reliance on debt financing within the capital structure over the period.
- Debt to Assets
- Debt to assets ratio maintained a very low level, ranging from 0.01 to 0.04. There was a visible but modest increase in mid-2020, similar to other debt ratios, before settling back near 0.02 in following periods. This trend highlights a minimal portion of assets being financed through debt over time.
- Financial Leverage
- Financial leverage ratios remained relatively stable, fluctuating narrowly between 1.30 and 1.37 across all quarters. This indicates a consistent proportion of total assets financed by equity and debt combined, with no significant changes in capital structure leverage during the time frame.
- Interest Coverage
- The interest coverage ratio showed substantial volatility throughout the periods. Initially, the ratio was extremely high, exceeding 2800 in early 2019, signifying a strong ability to cover interest expenses. It decreased sharply in 2020 to values near 300 to 800, reflecting either increased interest expenses or reduced earnings before interest and taxes. From late 2020 through 2023, the ratio stabilized somewhat, generally ranging between 300 and 1200, suggesting the company maintained a strong but less extreme ability to meet interest obligations compared to earlier periods.
- Summary
- In summary, the company has maintained a very conservative debt profile with minimal fluctuations in leverage ratios over the analysis period. Debt levels relative to equity, capital, and assets stayed low, indicating prudent financial management with limited reliance on debt financing. Financial leverage was stable, suggesting steady capital structure practices. The notable variability in interest coverage reflects changes in earnings and interest expenses but consistently indicates robust capacity to meet interest payments. Overall, the financial risk associated with debt appears minimal and well managed.
Debt Ratios
Coverage Ratios
Debt to Equity
Old Dominion Freight Line Inc., debt to equity 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 maturities of long-term debt | 20,000) | 20,000) | 20,000) | 20,000) | 20,000) | —) | —) | —) | —) | —) | —) | 45,000) | 45,000) | 45,000) | —) | —) | —) | —) | ||||||
| Long-term debt, excluding current maturities | 59,970) | 79,967) | 79,963) | 79,959) | 79,955) | 99,951) | 99,947) | 99,943) | 99,939) | 99,935) | 99,931) | 99,927) | 99,923) | —) | 45,000) | 45,000) | 45,000) | 45,000) | ||||||
| Total debt | 79,970) | 99,967) | 99,963) | 99,959) | 99,955) | 99,951) | 99,947) | 99,943) | 99,939) | 99,935) | 99,931) | 144,927) | 144,923) | 45,000) | 45,000) | 45,000) | 45,000) | 45,000) | ||||||
| Shareholders’ equity | 3,832,035) | 3,746,499) | 3,652,917) | 3,558,170) | 3,555,829) | 3,503,307) | 3,679,807) | 3,419,898) | 3,402,378) | 3,191,917) | 3,326,288) | 3,170,833) | 2,982,468) | 3,016,049) | 3,080,717) | 2,909,528) | 2,798,485) | 2,770,371) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity1 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.05 | 0.05 | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 0.84 | 0.80 | 0.81 | 0.84 | 0.82 | 0.85 | 0.86 | 1.07 | 1.11 | 1.20 | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | 1.07 | 1.23 | 1.26 | 1.48 | 1.39 | 1.04 | 0.64 | 0.67 | 0.55 | 0.57 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 2.52 | 2.71 | 2.74 | 2.85 | 2.52 | 2.71 | 2.10 | 2.11 | 2.01 | 1.64 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 4.17 | 4.80 | 4.68 | 6.74 | 8.55 | 9.55 | 7.03 | 6.55 | 7.39 | 5.69 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 1.04 | 1.11 | 0.99 | 1.20 | 1.26 | 1.42 | 1.54 | 1.84 | 2.09 | 3.32 | — | — | — | — | — | — | — | — | ||||||
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
Debt to equity = Total debt ÷ Shareholders’ equity
= 79,970 ÷ 3,832,035 = 0.02
2 Click competitor name to see calculations.
- Total Debt
- The total debt level remained steady at 45,000 thousand US dollars from the first quarter of 2019 through the first quarter of 2020. Beginning in the second quarter of 2020, there was a significant increase to approximately 144,923 thousand dollars, indicating a notable rise in leverage. Subsequently, the debt level decreased over the next quarters, fluctuating mostly around 99,900 thousand dollars from the fourth quarter of 2020 through the first quarter of 2023. In the most recent quarter, the debt level declined further to 79,970 thousand dollars, suggesting a deliberate reduction in debt exposure.
- Shareholders’ Equity
- Shareholders’ equity demonstrated a consistent upward trend throughout the entire period. Starting at approximately 2,770,371 thousand dollars in the first quarter of 2019, equity increased steadily to 3,832,035 thousand dollars by the second quarter of 2023. Minor fluctuations are observed, such as a slight dip in early 2020 and some periods of slower growth, but the overall trajectory shows a robust increase in equity capital over time.
- Debt to Equity Ratio
- The debt to equity ratio was very low and stable, around 0.01 to 0.02, during the initial five quarters up to the first quarter of 2020. After the debt increase in mid-2020, the ratio rose to between 0.03 and 0.05, reflecting the impact of higher debt on the capital structure. Throughout 2021 and 2022, the ratio remained stable at approximately 0.03 before slightly declining to 0.02 in the most recent quarter. This indicates that despite the increased borrowings in 2020, the company maintained a strong equity base and managed debt prudently.
Debt to Capital
Old Dominion Freight Line Inc., debt to capital 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 maturities of long-term debt | 20,000) | 20,000) | 20,000) | 20,000) | 20,000) | —) | —) | —) | —) | —) | —) | 45,000) | 45,000) | 45,000) | —) | —) | —) | —) | ||||||
| Long-term debt, excluding current maturities | 59,970) | 79,967) | 79,963) | 79,959) | 79,955) | 99,951) | 99,947) | 99,943) | 99,939) | 99,935) | 99,931) | 99,927) | 99,923) | —) | 45,000) | 45,000) | 45,000) | 45,000) | ||||||
| Total debt | 79,970) | 99,967) | 99,963) | 99,959) | 99,955) | 99,951) | 99,947) | 99,943) | 99,939) | 99,935) | 99,931) | 144,927) | 144,923) | 45,000) | 45,000) | 45,000) | 45,000) | 45,000) | ||||||
| Shareholders’ equity | 3,832,035) | 3,746,499) | 3,652,917) | 3,558,170) | 3,555,829) | 3,503,307) | 3,679,807) | 3,419,898) | 3,402,378) | 3,191,917) | 3,326,288) | 3,170,833) | 2,982,468) | 3,016,049) | 3,080,717) | 2,909,528) | 2,798,485) | 2,770,371) | ||||||
| Total capital | 3,912,005) | 3,846,466) | 3,752,880) | 3,658,129) | 3,655,784) | 3,603,258) | 3,779,754) | 3,519,841) | 3,502,317) | 3,291,852) | 3,426,219) | 3,315,760) | 3,127,391) | 3,061,049) | 3,125,717) | 2,954,528) | 2,843,485) | 2,815,371) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital1 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.05 | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 0.46 | 0.44 | 0.45 | 0.46 | 0.45 | 0.46 | 0.46 | 0.52 | 0.53 | 0.54 | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | 0.52 | 0.55 | 0.56 | 0.60 | 0.58 | 0.51 | 0.39 | 0.40 | 0.35 | 0.36 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 0.72 | 0.73 | 0.73 | 0.74 | 0.72 | 0.73 | 0.68 | 0.68 | 0.67 | 0.62 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 0.81 | 0.83 | 0.82 | 0.87 | 0.90 | 0.91 | 0.88 | 0.87 | 0.88 | 0.85 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 0.51 | 0.53 | 0.50 | 0.55 | 0.56 | 0.59 | 0.61 | 0.65 | 0.68 | 0.77 | — | — | — | — | — | — | — | — | ||||||
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
Debt to capital = Total debt ÷ Total capital
= 79,970 ÷ 3,912,005 = 0.02
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals specific trends in the company's debt structure and overall capital base over the observed periods.
- Total Debt
- The total debt remained constant at 45,000 thousand USD from the first quarter of 2019 through the first quarter of 2020. There was a significant increase in the second quarter of 2020, with debt nearly tripling to approximately 144,923 thousand USD, indicating a substantial borrowing event. Afterwards, the debt level decreased in the fourth quarter of 2020 to around 99,931 thousand USD, stabilizing close to this range through the subsequent quarters of 2021 and 2022. In the second quarter of 2023, the total debt reduced further to 79,970 thousand USD, marking a downward shift in the company's leverage.
- Total Capital
- Total capital exhibited a generally upward trajectory starting at 2,815,371 thousand USD in the first quarter of 2019 and rising to 3,912,005 thousand USD by the second quarter of 2023. This growth was relatively steady, despite minor fluctuations, reflecting gradual accumulation of equity and retained earnings or possibly other capital inflows over time. Notable increases occurred during the latter part of 2020 and throughout 2021 into 2022, showing strength in the company’s capital base.
- Debt to Capital Ratio
- The debt to capital ratio was low throughout the observed period, maintaining values generally around 0.01 to 0.03. This indicates a conservative approach to leverage, with debt representing a small fraction of total capital. Following the debt increase in mid-2020, the ratio peaked around 0.05 but soon reverted to a more stable range near 0.03, and eventually decreased slightly to 0.02 by mid-2023. This pattern suggests the company managed to keep debt proportions relatively low in relation to its capital structure, minimizing potential financial risk.
Overall, the data reflects a company that temporarily increased its debt significantly around mid-2020, potentially in response to external conditions or strategic initiatives, but subsequently lowered and maintained its debt levels at a manageable proportion of total capital. The consistent growth in total capital alongside the modest debt levels indicates a financially stable position with low reliance on debt financing over the medium term.
Debt to Assets
Old Dominion Freight Line Inc., debt to assets 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 maturities of long-term debt | 20,000) | 20,000) | 20,000) | 20,000) | 20,000) | —) | —) | —) | —) | —) | —) | 45,000) | 45,000) | 45,000) | —) | —) | —) | —) | ||||||
| Long-term debt, excluding current maturities | 59,970) | 79,967) | 79,963) | 79,959) | 79,955) | 99,951) | 99,947) | 99,943) | 99,939) | 99,935) | 99,931) | 99,927) | 99,923) | —) | 45,000) | 45,000) | 45,000) | 45,000) | ||||||
| Total debt | 79,970) | 99,967) | 99,963) | 99,959) | 99,955) | 99,951) | 99,947) | 99,943) | 99,939) | 99,935) | 99,931) | 144,927) | 144,923) | 45,000) | 45,000) | 45,000) | 45,000) | 45,000) | ||||||
| Total assets | 4,978,932) | 4,957,088) | 4,838,610) | 4,811,393) | 4,793,867) | 4,722,650) | 4,821,544) | 4,613,120) | 4,534,446) | 4,351,863) | 4,369,410) | 4,273,688) | 4,080,028) | 3,934,986) | 3,995,568) | 3,892,418) | 3,758,703) | 3,704,042) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets1 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.04 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 0.24 | 0.23 | 0.24 | 0.24 | 0.24 | 0.25 | 0.25 | 0.28 | 0.29 | 0.30 | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | 0.27 | 0.29 | 0.29 | 0.30 | 0.30 | 0.28 | 0.24 | 0.25 | 0.22 | 0.23 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 0.50 | 0.51 | 0.51 | 0.51 | 0.50 | 0.50 | 0.47 | 0.47 | 0.46 | 0.43 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 0.44 | 0.45 | 0.48 | 0.48 | 0.48 | 0.50 | 0.52 | 0.51 | 0.51 | 0.48 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 0.30 | 0.31 | 0.28 | 0.29 | 0.29 | 0.31 | 0.32 | 0.34 | 0.35 | 0.37 | — | — | — | — | — | — | — | — | ||||||
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
Debt to assets = Total debt ÷ Total assets
= 79,970 ÷ 4,978,932 = 0.02
2 Click competitor name to see calculations.
- Total debt
- The total debt remained stable at 45 million USD through the first five quarters until the first quarter of 2020. A significant rise occurred in the second quarter of 2020, with debt increasing sharply to approximately 145 million USD. Following this peak, the debt level reduced notably to around 100 million USD by the fourth quarter of 2020 and remained relatively steady through the end of 2022. A slight decline was observed in the first half of 2023, with debt decreasing to approximately 80 million USD by June 2023.
- Total assets
- Total assets demonstrated continuous growth throughout the examined period. Starting from roughly 3.7 billion USD in early 2019, assets increased consistently to nearly 4.9 billion USD by mid-2023. Although there were minor fluctuations, the overall trend was upward, with the most significant quarterly increments observed between mid-2021 and mid-2023.
- Debt to assets ratio
- The debt to assets ratio was exceptionally low and stable, starting at 0.01 and holding steady through early 2020. This ratio experienced a marked increase in the second quarter of 2020, peaking at 0.04, reflecting the rise in total debt during that period. Subsequently, the ratio declined and stabilized around 0.02 from the fourth quarter of 2020 onward, indicating that despite increased debt levels compared to early periods, the company's leverage relative to its asset base remained low and consistent through to mid-2023.
Financial Leverage
Old Dominion Freight Line Inc., financial leverage 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) | ||||||||||||||||||||||||
| Total assets | 4,978,932) | 4,957,088) | 4,838,610) | 4,811,393) | 4,793,867) | 4,722,650) | 4,821,544) | 4,613,120) | 4,534,446) | 4,351,863) | 4,369,410) | 4,273,688) | 4,080,028) | 3,934,986) | 3,995,568) | 3,892,418) | 3,758,703) | 3,704,042) | ||||||
| Shareholders’ equity | 3,832,035) | 3,746,499) | 3,652,917) | 3,558,170) | 3,555,829) | 3,503,307) | 3,679,807) | 3,419,898) | 3,402,378) | 3,191,917) | 3,326,288) | 3,170,833) | 2,982,468) | 3,016,049) | 3,080,717) | 2,909,528) | 2,798,485) | 2,770,371) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Financial leverage1 | 1.30 | 1.32 | 1.32 | 1.35 | 1.35 | 1.35 | 1.31 | 1.35 | 1.33 | 1.36 | 1.31 | 1.35 | 1.37 | 1.30 | 1.30 | 1.34 | 1.34 | 1.34 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 3.55 | 3.41 | 3.45 | 3.43 | 3.38 | 3.37 | 3.43 | 3.77 | 3.86 | 3.99 | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | 3.93 | 4.32 | 4.37 | 4.98 | 4.66 | 3.68 | 2.68 | 2.65 | 2.56 | 2.55 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 5.00 | 5.30 | 5.38 | 5.56 | 5.07 | 5.38 | 4.49 | 4.48 | 4.34 | 3.80 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 9.52 | 10.56 | 9.77 | 14.08 | 17.76 | 19.05 | 13.56 | 12.76 | 14.49 | 11.84 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 3.51 | 3.60 | 3.59 | 4.10 | 4.30 | 4.55 | 4.87 | 5.46 | 6.00 | 8.86 | — | — | — | — | — | — | — | — | ||||||
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
Financial leverage = Total assets ÷ Shareholders’ equity
= 4,978,932 ÷ 3,832,035 = 1.30
2 Click competitor name to see calculations.
- Total Assets
-
The total assets exhibited a generally upward trend over the observed periods, increasing from approximately $3.7 billion at the end of Q1 2019 to nearly $5 billion by Q2 2023. Some fluctuations occurred, particularly a slight decline between Q4 2021 and Q1 2022, but overall growth was consistent. The most significant growth phases appeared between Q1 2020 and Q4 2021, and then a stable increase resumed from Q1 2022 onwards.
- Shareholders' Equity
-
Shareholders' equity also increased steadily, rising from around $2.77 billion in early 2019 to over $3.8 billion by mid-2023. Growth in equity generally mirrored the asset increases but displayed occasional slowdowns, such as a decline from Q4 2021 to Q1 2022. Nonetheless, equity maintained an overall positive trajectory, reflecting continuous value creation for shareholders over the years.
- Financial Leverage
-
The financial leverage ratio exhibited moderate fluctuations, ranging from a low of approximately 1.3 to a high at roughly 1.37. The ratio remained relatively stable over the entire period, indicating consistent use of debt relative to equity. Despite some rises, leverage did not show any extreme volatility, suggesting prudent capital structure management and balanced reliance on equity and debt financing.
- Summary of Trends and Insights
-
The data reveals a solid growth pattern in total assets and shareholders’ equity over the examined timeframe, signifying the company’s expanding asset base and increasing net worth. The steady financial leverage ratio suggests cautious and stable use of debt during this growth phase. The slight decreases in both assets and equity in early 2022 highlight potential short-term adjustments but do not alter the long-term upward trends. Overall, the financial position strengthened gradually while maintaining a balanced capital structure.
Interest Coverage
Old Dominion Freight Line Inc., interest coverage calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net income | 292,362) | 285,038) | 323,929) | 377,401) | 376,078) | 299,751) | 278,806) | 286,634) | 269,576) | 199,359) | 189,832) | 201,868) | 147,805) | 133,177) | 144,024) | 164,099) | 174,072) | 133,323) | ||||||
| Add: Income tax expense | 99,564) | 99,111) | 108,073) | 118,664) | 132,135) | 105,318) | 92,970) | 96,317) | 94,812) | 69,949) | 63,491) | 66,467) | 51,200) | 47,524) | 45,570) | 54,295) | 61,502) | 47,064) | ||||||
| Add: Interest expense | 89) | 200) | 280) | 997) | 213) | 73) | 384) | 371) | 465) | 507) | 846) | 1,071) | 765) | 100) | 92) | 3) | 160) | 122) | ||||||
| Earnings before interest and tax (EBIT) | 392,015) | 384,349) | 432,282) | 497,062) | 508,426) | 405,142) | 372,160) | 383,322) | 364,853) | 269,815) | 254,169) | 269,406) | 199,770) | 180,801) | 189,686) | 218,397) | 235,734) | 180,509) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Interest coverage1 | 1,089.21 | 1,078.18 | 1,179.09 | 1,069.46 | 1,603.31 | 1,179.80 | 804.95 | 581.16 | 400.91 | 311.43 | 325.00 | 414.04 | 821.51 | 2,322.87 | 2,186.54 | 2,014.49 | 1,921.97 | 2,829.05 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||
| Uber Technologies Inc. | 0.55 | -4.42 | -15.49 | -15.64 | -19.05 | -13.64 | -1.20 | -4.91 | -1.89 | -7.20 | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 7.59 | 8.00 | 8.14 | 8.40 | 8.34 | 8.53 | 8.33 | 8.05 | 7.66 | 6.91 | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 2.92 | 2.44 | 1.59 | 0.40 | 0.06 | -0.56 | -0.62 | -1.71 | -4.00 | -6.18 | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 18.59 | 20.44 | 22.06 | 21.60 | 21.21 | 20.95 | 24.91 | 12.99 | 12.33 | 10.56 | — | — | — | — | — | — | — | — | ||||||
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
Interest coverage
= (EBITQ2 2023
+ EBITQ1 2023
+ EBITQ4 2022
+ EBITQ3 2022)
÷ (Interest expenseQ2 2023
+ Interest expenseQ1 2023
+ Interest expenseQ4 2022
+ Interest expenseQ3 2022)
= (392,015 + 384,349 + 432,282 + 497,062)
÷ (89 + 200 + 280 + 997)
= 1,089.21
2 Click competitor name to see calculations.
The earnings before interest and tax (EBIT) exhibit notable fluctuations across the reported quarters. Starting at approximately $180.5 million in the first quarter of 2019, there is a general upward trajectory with some variability, reaching a peak in the second quarter of 2022 at about $508.4 million. Following this peak, EBIT declines over the subsequent four quarters, though it remains substantially higher than the initial levels of 2019 and 2020.
Interest expense remains relatively low and volatile when compared to EBIT. It begins at $122 thousand in the first quarter of 2019, fluctuates over time with minor spikes, including a rise to $1.07 million in the third quarter of 2020, and then generally decreases towards the later periods, reaching as low as $89 thousand by the second quarter of 2023.
The interest coverage ratio, which measures the ability to service interest payments with EBIT, remains exceptionally strong throughout the periods. Despite some variability, the ratio consistently stays above 300 times, indicating a robust capacity to cover interest expenses from operating earnings. The lowest recorded ratio is around 311 in the fourth quarter of 2020, while the highest surpasses 2800 times in the first quarter of 2019. In the most recent quarters, the ratio stabilizes around 1000 times, illustrating sustained strong financial health in terms of interest coverage.
- EBIT Trends
- Demonstrates an overall rising trend from 2019 through mid-2022 with a peak in Q2 2022, followed by a gradual decline till mid-2023, yet levels remain higher compared to earlier years.
- Interest Expense Patterns
- Remains relatively minor in scale compared to EBIT, showing some irregular increases but no sustained upward trend, and tends to decline towards the latest periods.
- Interest Coverage Ratio
- Maintains extremely high values throughout, reflecting significant earnings relative to interest obligations, with some fluctuations but consistently indicative of strong coverage capability.