Stock Analysis on Net

Old Dominion Freight Line Inc. (NASDAQ:ODFL)

This company has been moved to the archive! The financial data has not been updated since August 4, 2023.

Financial Reporting Quality: Aggregate Accruals 

Microsoft Excel

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Old Dominion Freight Line Inc., balance sheet computation of aggregate accruals

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Operating Assets
Total assets 4,838,610 4,821,544 4,369,410 3,995,568 3,545,283
Less: Cash and cash equivalents 186,312 462,564 401,430 403,571 190,282
Less: Short-term investments 49,355 254,433 330,274
Operating assets 4,602,943 4,104,547 3,637,706 3,591,997 3,355,001
Operating Liabilities
Total liabilities 1,185,693 1,141,737 1,043,122 914,851 864,800
Less: Current maturities of long-term debt 20,000
Less: Long-term debt, excluding current maturities 79,963 99,947 99,931 45,000 45,000
Operating liabilities 1,085,730 1,041,790 943,191 869,851 819,800
 
Net operating assets1 3,517,213 3,062,757 2,694,515 2,722,146 2,535,201
Balance-sheet-based aggregate accruals2 454,456 368,242 (27,631) 186,945
Financial Ratio
Balance-sheet-based accruals ratio3 13.81% 12.79% -1.02% 7.11%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
FedEx Corp. 0.91% 6.93% 7.01%
Uber Technologies Inc. -40.74% 31.28% 38.96%
Union Pacific Corp. 3.63% 2.46% -1.44%
United Parcel Service Inc. 21.85% 29.53% -18.06%
Balance-Sheet-Based Accruals Ratio, Sector
Transportation 1.14% 13.12% 2.52% 200.00%
Balance-Sheet-Based Accruals Ratio, Industry
Industrials 0.12% 3.77% 5.75% 200.00%

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
Net operating assets = Operating assets – Operating liabilities
= 4,602,9431,085,730 = 3,517,213

2 2022 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2022 – Net operating assets2021
= 3,517,2133,062,757 = 454,456

3 2022 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 454,456 ÷ [(3,517,213 + 3,062,757) ÷ 2] = 13.81%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Old Dominion Freight Line Inc. deteriorated earnings quality from 2021 to 2022.

Cash-Flow-Statement-Based Accruals Ratio

Old Dominion Freight Line Inc., cash flow statement computation of aggregate accruals

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income 1,377,159 1,034,375 672,682 615,518 605,668
Less: Net cash provided by operating activities 1,691,582 1,212,606 933,024 983,888 900,116
Less: Net cash used in investing activities (547,472) (455,288) (551,663) (473,639) (580,391)
Cash-flow-statement-based aggregate accruals 233,049 277,057 291,321 105,269 285,943
Financial Ratio
Cash-flow-statement-based accruals ratio1 7.08% 9.62% 10.76% 4.00%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
FedEx Corp. 2.12% 3.01% 5.95%
Uber Technologies Inc. -49.13% 6.66% -9.47%
Union Pacific Corp. 2.53% 0.47% -1.22%
United Parcel Service Inc. 17.11% 7.63% -18.35%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Transportation -1.03% 3.50% -3.17% -0.72%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Industrials -4.47% -8.82% -2.05% -11.47%

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
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × 233,049 ÷ [(3,517,213 + 3,062,757) ÷ 2] = 7.08%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Old Dominion Freight Line Inc. improved earnings quality from 2021 to 2022.