Name: Fixed Asset Turnover

Definition: Fixed asset turnover shows how well the company’s long-term physical assets — factories, equipment, property — are being used to generate sales. A high ratio means the company’s facilities are productive and efficient. A low ratio might signal underused assets or over-investment in equipment that isn’t driving enough sales.

Interpretation:
• In '2021', ODFL's fixed asset turnover was 1.63, illustrating how efficiently fixed assets are generating revenue. Industry average for Trucking Freight/Courier Services in '2021' stood at 2.45.
• In '2022', ODFL's fixed asset turnover was 1.81, illustrating how efficiently fixed assets are generating revenue. The increase since '2021' reflects strengthening financial performance. Industry average for Trucking Freight/Courier Services in '2022' stood at 3.20. Industry average increased by 0.75 compared to previous year.
• In '2023', ODFL's fixed asset turnover was 1.51, illustrating how efficiently fixed assets are generating revenue. The decline from '2022' may indicate some operational or financial challenges. Industry average for Trucking Freight/Courier Services in '2023' stood at 2.36. Industry average declined by 0.83 from previous year.
• In '2024', ODFL's fixed asset turnover was 1.35, illustrating how efficiently fixed assets are generating revenue. The decline from '2023' may indicate some operational or financial challenges. Industry average for Trucking Freight/Courier Services in '2024' stood at 2.24. Industry average declined by 0.12 from previous year.
Overall, ODFL's fixed asset turnover has consistently declined during the past 4 years.

Formula: Fixed Asset Turnover = Net Sales / Net Fixed Assets

Good Range: Ranges from 1 to 5 depending on asset intensity.