Old Dominion Freight Line (Old Dominion Freight Line) Gross Margin % : 35.34% (As of Dec. 2023)

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What is Old Dominion Freight Line Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Old Dominion Freight Line's Gross Profit for the three months ended in Dec. 2023 was $529 Mil. Old Dominion Freight Line's Revenue for the three months ended in Dec. 2023 was $1,496 Mil. Therefore, Old Dominion Freight Line's Gross Margin % for the quarter that ended in Dec. 2023 was 35.34%.

The historical rank and industry rank for Old Dominion Freight Line's Gross Margin % or its related term are showing as below:

ODFL' s Gross Margin % Range Over the Past 10 Years
Min: 24.66 Med: 28.39 Max: 36.04
Current: 35.33

During the past 13 years, the highest Gross Margin % of Old Dominion Freight Line was 36.04%. The lowest was 24.66%. And the median was 28.39%.

ODFL's Gross Margin % is ranked better than
77.17% of 946 companies
in the Transportation industry
Industry Median: 19.955 vs ODFL: 35.33

Old Dominion Freight Line had a gross margin of 35.34% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Old Dominion Freight Line was 5.60% per year.

Old Dominion Freight Line Gross Margin % Historical Data

The historical data trend for Old Dominion Freight Line's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Old Dominion Freight Line Gross Margin % Chart

Old Dominion Freight Line Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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28.48

30.60

33.77

36.04

35.32

Old Dominion Freight Line Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															35.37	34.05	35.14	36.69	35.34

Competitive Comparison of Old Dominion Freight Line's Gross Margin %

For the Trucking subindustry, Old Dominion Freight Line's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Old Dominion Freight Line's Gross Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Old Dominion Freight Line's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Old Dominion Freight Line's Gross Margin % falls into.

Old Dominion Freight Line Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Old Dominion Freight Line's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	2072.2	/	5866.152
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5866.152 - 3793.953)	/	5866.152
	=	35.32 %

Old Dominion Freight Line's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	528.6	/	1495.55
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1495.55 - 966.985)	/	1495.55
	=	35.34 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Old Dominion Freight Line (NAS:ODFL) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Old Dominion Freight Line had a gross margin of 35.34% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Old Dominion Freight Line Gross Margin % Related Terms

Thank you for viewing the detailed overview of Old Dominion Freight Line's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Old Dominion Freight Line (Old Dominion Freight Line) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Old Dominion Freight Line Inc (NAS:ODFL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

ODFL:Mexico ODF:Germany ODF:Germany O1DF34:Brazil

Address

500 Old Dominion Way, Thomasville, NC, USA, 27360

Website

https://www.odfl.com

Old Dominion Freight Line is the second-largest less than truckload carrier in the United States, with more than 250 service centers and 11,000-plus tractors. It is one of the most disciplined and efficient providers in the trucking industry, and its profitability and capital returns stand head and shoulders above its peers. Strategic initiatives revolve around increasing network density through market share gains and maintaining industry-leading service via steadfast infrastructure investment.

Executives

David S Congdon	director, 10 percent owner, officer: President and COO	C/O OLD DOMINION FREIGHT LINE, INC., 500 OLD DOMINION WAY, THOMASVILLE NC 27360
Stith Thomas A. Iii	director	500 OLD DOMINION WAY, THOMASVILLE NC 27360
Steven W. Hartsell	officer: SVP - Sales	500 OLD DOMINION WAY, THOMASVILLE NC 27360
Andrew Stephen Davis	director	500 OLD DOMINION WAY, THOMASVILLE NC 27360
Christopher James Kelley	officer: SVP - Operations	500 OLD DOMINION WAY, THOMASVILLE NC 27360
Bradley R Gabosch	director	500 OLD DOMINION WAY, THOMASVILLE NC 27360
David J. Bates	officer: SVP - Operations	C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Leo H Suggs	director	UNION PACIFIC CORP, 1416 DODGE ST, OMAHA NE 68179
D. Michael Wray	director	7205 PINETREE ROAD, RICHMOND VA 23229
Gregory B Plemmons	officer: SVP - Sales	500 OLD DOMINION WAY, THOMASVILLE NC 27360
Wendy T. Stallings	director	500 OLD DOMINION WAY, THOMASVILLE NC 27360
Earl E Congdon	director, officer: Chairman of the Board and CEO	C/O OLD DOMINION FREIGHT LINE, INC., 500 OLD DOMINION WAY, THOMASVILLE NC 27360
Sherry A Aaholm	director	500 JACKSON STREET, COLUMBUS IN 47201
Christopher T Brooks	officer: SVP - Human Resources & Safety	500 OLD DOMINION WAY, THOMASVILLE NC 27360
Kimberly S Maready	officer: VP - Accounting & Fin. (PAO)	500 OLD DOMINION WAY, THOMASVILLE NC 27360