Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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Profitability Ratios (Summary)
Old Dominion Freight Line Inc., profitability 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).
- Operating Profit Margin Trends
- The operating profit margin exhibited a generally upward trend over the given periods. Starting around 20.59% in the first quarter of 2019, it maintained a level near 20% throughout 2019 and 2020, with a gradual increase. From 2021 onward, there was a more pronounced rise, reaching a peak of approximately 29.4% in the first quarter of 2023 before slightly declining to 28.58% by mid-2023. This indicates improving operational efficiency and possibly better cost management or revenue growth over time.
- Net Profit Margin Analysis
- Similar to the operating margin, the net profit margin showed steady improvement throughout the periods reviewed. Beginning near 15.32% in early 2019, it remained relatively stable through 2019 and 2020, then demonstrated a consistent upward trajectory from 2021, culminating at around 22% in early 2023. A minor decrease was noted towards mid-2023 with a margin of 21.49%. This pattern suggests enhanced profitability after expenses and taxes, reflecting overall financial health improvement.
- Return on Equity (ROE) Observations
- Return on equity fluctuated initially but generally trended upward during the timeline. Early values near 22.73% in Q1 2019 dipped to approximately 19.75% by mid-2020, indicating some variability in generating shareholder returns. From late 2020, ROE increased significantly, peaking at 37.7% in the final quarter of 2022. A reduction followed in early and mid-2023 to around 33.37%. The rising ROE over most of the timeline signifies enhanced effectiveness in using equity to generate profits, though recent declines may warrant monitoring for sustainability.
- Return on Assets (ROA) Development
- Return on assets showed a generally positive trend, starting at 17% in early 2019, with minor fluctuations and a dip in mid-2020 coinciding with other performance metrics. Subsequently, ROA steadily increased, peaking at 28.46% in late 2022. A slight decrease occurred afterwards, falling to 25.68% by mid-2023. This upward movement over time suggests improved asset utilization for profit generation, reflecting operational efficiency and asset management effectiveness.
- Overall Insights
- The data reflects a strong and consistent improvement in profitability and efficiency measures from 2019 through 2022, with a trend of stabilization or minor declines in early 2023. The rising margins and returns indicate successful strategic and operational execution leading to increased profitability and shareholder value. The slight recent decreases might imply emerging challenges or market conditions necessitating attention. Continuous monitoring of these financial ratios will be essential to assess the durability of these improvements.
Return on Sales
Return on Investment
Operating Profit Margin
Old Dominion Freight Line Inc., operating profit margin 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) | ||||||||||||||||||||||||
| Operating income | ||||||||||||||||||||||||
| Revenue from operations | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | ||||||||||||||||||||||||
| Uber Technologies Inc. | ||||||||||||||||||||||||
| Union Pacific Corp. | ||||||||||||||||||||||||
| United Airlines Holdings Inc. | ||||||||||||||||||||||||
| United Parcel Service Inc. | ||||||||||||||||||||||||
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
Operating profit margin = 100
× (Operating incomeQ2 2023
+ Operating incomeQ1 2023
+ Operating incomeQ4 2022
+ Operating incomeQ3 2022)
÷ (Revenue from operationsQ2 2023
+ Revenue from operationsQ1 2023
+ Revenue from operationsQ4 2022
+ Revenue from operationsQ3 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Operating Income
- Operating income shows a generally increasing trend over the analyzed periods. From early 2019 through to mid-2020, the figures fluctuated moderately, with some decline evident at the start of 2020. However, from the third quarter of 2020, operating income demonstrates a strong upward trajectory, peaking notably in the second quarter of 2022. Although there was a slight dip in the last two quarters of 2022, income levels remain significantly higher than the early periods. The first half of 2023 shows stabilization with only minor fluctuations compared to the previous quarters.
- Revenue from Operations
- Revenue from operations exhibits a modest upward trend overall, with some variability across quarters. Initially, revenue maintained a fairly stable range throughout 2019 and early 2020, before experiencing a decline in the middle of 2020. Following this, revenues increased substantially from late 2020 through 2021, peaking in the second quarter of 2022. In the subsequent periods, revenue experienced a mild contraction, though it remains at levels consistently higher than those observed prior to 2021.
- Operating Profit Margin
- The operating profit margin reflects continuous improvement over the entire period. Starting at around 20.5% in early 2019, margins remained relatively steady until mid-2020. From that point onward, there is a clear upward trend reaching nearly 30% by mid-2022. Margins slightly tapered off in late 2022 and into 2023 but stayed above 28%, indicating sustained operational efficiency gains despite some decreases in revenue and operating income toward the later periods.
- Summary and Insights
- The data indicates that the company has progressively enhanced its profitability and operational efficiency over the analyzed period. Despite some fluctuations in revenue, especially during mid-2020 and after mid-2022, operating income and profit margins have trended upwards, suggesting effective cost management or improvements in pricing and service mix. The peak in profitability seen in mid-2022 points to a particularly strong performance phase, while the subsequent minor declines in revenue and income suggest possible market or economic headwinds. Nevertheless, margins remaining near peak levels imply resilience in the company’s underlying business model and operational strategies.
Net Profit Margin
Old Dominion Freight Line Inc., net profit margin 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 | ||||||||||||||||||||||||
| Revenue from operations | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | ||||||||||||||||||||||||
| Uber Technologies Inc. | ||||||||||||||||||||||||
| Union Pacific Corp. | ||||||||||||||||||||||||
| United Airlines Holdings Inc. | ||||||||||||||||||||||||
| United Parcel Service Inc. | ||||||||||||||||||||||||
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
Net profit margin = 100
× (Net incomeQ2 2023
+ Net incomeQ1 2023
+ Net incomeQ4 2022
+ Net incomeQ3 2022)
÷ (Revenue from operationsQ2 2023
+ Revenue from operationsQ1 2023
+ Revenue from operationsQ4 2022
+ Revenue from operationsQ3 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Income
- Net income demonstrated a generally upward trend from March 2019 through June 2022, increasing from approximately $133 million to a peak of around $377 million. This was followed by a decline beginning in the third quarter of 2022 and continuing into 2023, with net income decreasing to a range between $285 million and $292 million by mid-2023. The increase over the initial period indicates growth and improved profitability, while the later decrease suggests a period of moderation or challenges affecting profitability.
- Revenue from Operations
- Revenue exhibited fluctuations across the observed periods. From March 2019 to June 2020, revenue showed a decline from roughly $991 million to about $896 million, likely reflecting early challenges. Subsequently, revenue increased substantially, reaching a high of approximately $1.67 billion in June 2022. After this peak, revenue began to decrease, falling to around $1.41 billion by mid-2023. Despite the dip after mid-2022, revenue levels remained higher than the initial periods, indicating overall growth in operations.
- Net Profit Margin
- The net profit margin followed a steadily increasing trajectory throughout the entire timeframe. Starting at 15.32% in the first quarter of 2019, it climbed consistently to reach a maximum of 22.00% around December 2022. After this peak, the margin experienced a slight decrease but remained robust at approximately 21.49% by June 2023. This upward trend suggests improving operational efficiency and profitability, even during periods when revenue and net income faced some reductions.
- Overall Analysis
- The data reflects significant growth in both net income and revenue from early 2019 through mid-2022, accompanied by steadily improving profit margins. The peak periods for profitability and revenue occurred around mid to late 2022, after which a mild contraction was observed in both revenue and net income. However, the net profit margin remained relatively high, indicating that the company maintained strong profitability despite the decrease in top-line sales and net income toward 2023. The trends suggest resilient financial performance with potential impacts from external factors or operational adjustments in the most recent periods.
Return on Equity (ROE)
Old Dominion Freight Line Inc., ROE calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net income | ||||||||||||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | ||||||||||||||||||||||||
| Uber Technologies Inc. | ||||||||||||||||||||||||
| Union Pacific Corp. | ||||||||||||||||||||||||
| United Airlines Holdings Inc. | ||||||||||||||||||||||||
| United Parcel Service Inc. | ||||||||||||||||||||||||
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
ROE = 100
× (Net incomeQ2 2023
+ Net incomeQ1 2023
+ Net incomeQ4 2022
+ Net incomeQ3 2022)
÷ Shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial performance reveals a generally positive trajectory in net income, shareholders’ equity, and return on equity (ROE) over the observed periods.
- Net Income
- There is a noticeable trend of growth in net income over the timeframe. Starting from approximately $133 million in the first quarter of 2019, net income exhibits a moderate increase with some fluctuations through 2019 and 2020. A significant upward movement occurs from early 2021 onwards, peaking near $377 million in the third quarter of 2022. Subsequently, there is a slight decline followed by stabilization around $290 million in mid-2023. This pattern indicates strong profitability improvement especially post-2020 despite some recent moderation.
- Shareholders’ Equity
- Shareholders’ equity demonstrates steady growth across the entire period. Initially positioned around $2.77 billion in early 2019, it advances with minor fluctuations to reach approximately $3.8 billion by mid-2023. The increase is consistent and appears to support the company’s capacity for reinvestment and growth, reflecting accumulation of retained earnings and likely capital contributions over time.
- Return on Equity (ROE)
- ROE reveals a marked improvement through the analyzed quarters, highlighting enhanced efficiency in generating profits from equity. Starting at roughly 23% at the beginning of 2019, the ROE maintains a relatively stable range near 20% during 2019-2020. From 2021, there is a pronounced upward surge, climbing steadily to peak close to 38% in late 2022. Although a modest decline occurs moving into 2023, the ROE remains robust above 33%. This trend suggests successful operational management and increased profitability relative to equity base.
Overall, the company shows strong financial health characterized by growing profitability and equity, supported by increasingly efficient use of equity capital as evidenced by rising ROE. The recent slight downturns in net income and ROE towards mid-2023 warrant continued monitoring but do not currently overshadow the positive long-term trajectory.
Return on Assets (ROA)
Old Dominion Freight Line Inc., ROA calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net income | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | ||||||||||||||||||||||||
| Uber Technologies Inc. | ||||||||||||||||||||||||
| Union Pacific Corp. | ||||||||||||||||||||||||
| United Airlines Holdings Inc. | ||||||||||||||||||||||||
| United Parcel Service Inc. | ||||||||||||||||||||||||
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
ROA = 100
× (Net incomeQ2 2023
+ Net incomeQ1 2023
+ Net incomeQ4 2022
+ Net incomeQ3 2022)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends regarding profitability and asset utilization over the examined periods.
- Net Income
- Net income demonstrated a general upward trend from the first quarter of 2019 to mid-2022, increasing from approximately 133 million US dollars to a peak of over 377 million US dollars by September 2022. Subsequent quarters show a moderate decline, stabilizing around the 285 to 292 million US dollars range by mid-2023. This pattern indicates growth in earnings over time, with some normalization after a peak period.
- Total Assets
- Total assets steadily increased throughout the timeframe, rising from about 3.7 billion US dollars in early 2019 to nearly 5.0 billion US dollars by mid-2023. This consistent growth suggests ongoing investment or asset accumulation, supporting the company's expanding operational capacity or asset base.
- Return on Assets (ROA)
- The return on assets showed a notable improvement over the period. Starting at approximately 17% in early 2019, ROA declined slightly during 2020 but then progressively increased to reach a high of 28.46% by late 2022. A slight decrease to around 25.68% was observed by mid-2023. This indicates that despite increasing asset levels, the company enhanced its efficiency in generating net income from its asset base, peaking near the end of 2022 before experiencing a minor decline.
Overall, the data suggests robust financial performance with increasing profitability and effective asset utilization. The peak in net income and ROA in late 2022 may reflect favorable market conditions or operational improvements, while the slight decrease in the first half of 2023 may warrant monitoring to assess sustainability.