Stock Analysis on Net
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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Old Dominion Freight Line Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2022 37.70% = 28.46% × 1.32
Dec 31, 2021 28.11% = 21.45% × 1.31
Dec 31, 2020 20.22% = 15.40% × 1.31
Dec 31, 2019 19.98% = 15.41% × 1.30
Dec 31, 2018 22.60% = 17.08% × 1.32

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).

The primary reason for the increase in return on equity ratio (ROE) over 2022 year is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Old Dominion Freight Line Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2022 37.70% = 22.00% × 1.29 × 1.32
Dec 31, 2021 28.11% = 19.68% × 1.09 × 1.31
Dec 31, 2020 20.22% = 16.75% × 0.92 × 1.31
Dec 31, 2019 19.98% = 14.98% × 1.03 × 1.30
Dec 31, 2018 22.60% = 14.98% × 1.14 × 1.32

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).

The primary reason for the increase in return on equity ratio (ROE) over 2022 year is the increase in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Old Dominion Freight Line Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2022 37.70% = 0.75 × 1.00 × 29.44% × 1.29 × 1.32
Dec 31, 2021 28.11% = 0.74 × 1.00 × 26.45% × 1.09 × 1.31
Dec 31, 2020 20.22% = 0.75 × 1.00 × 22.52% × 0.92 × 1.31
Dec 31, 2019 19.98% = 0.75 × 1.00 × 20.06% × 1.03 × 1.30
Dec 31, 2018 22.60% = 0.74 × 1.00 × 20.17% × 1.14 × 1.32

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).

The primary reason for the increase in return on equity ratio (ROE) over 2022 year is the increase in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Old Dominion Freight Line Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2022 28.46% = 22.00% × 1.29
Dec 31, 2021 21.45% = 19.68% × 1.09
Dec 31, 2020 15.40% = 16.75% × 0.92
Dec 31, 2019 15.41% = 14.98% × 1.03
Dec 31, 2018 17.08% = 14.98% × 1.14

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).

The primary reason for the increase in return on assets ratio (ROA) over 2022 year is the increase in asset turnover ratio.

Four-Component Disaggregation of ROA

Old Dominion Freight Line Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2022 28.46% = 0.75 × 1.00 × 29.44% × 1.29
Dec 31, 2021 21.45% = 0.74 × 1.00 × 26.45% × 1.09
Dec 31, 2020 15.40% = 0.75 × 1.00 × 22.52% × 0.92
Dec 31, 2019 15.41% = 0.75 × 1.00 × 20.06% × 1.03
Dec 31, 2018 17.08% = 0.74 × 1.00 × 20.17% × 1.14

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).

The primary reason for the increase in return on assets ratio (ROA) over 2022 year is the increase in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Old Dominion Freight Line Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2022 22.00% = 0.75 × 1.00 × 29.44%
Dec 31, 2021 19.68% = 0.74 × 1.00 × 26.45%
Dec 31, 2020 16.75% = 0.75 × 1.00 × 22.52%
Dec 31, 2019 14.98% = 0.75 × 1.00 × 20.06%
Dec 31, 2018 14.98% = 0.74 × 1.00 × 20.17%

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).

The primary reason for the increase in net profit margin ratio over 2022 year is the increase in operating profitability measured by EBIT margin ratio.