Old Dominion Freight Line
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Interim Report
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Old Dominion Freight Line Inc.
Bryson DeVan, Rachel Lassoff
Old Dominion Freight Line Inc., or ODFL, is a truckload motor carrier that operates in both the United States and North America. It provides regional, inter-regional, and national services across North America and has established itself as leader in the freight industry (Old dominion freight line Inc. Profile, n.d, n.p). ODFL’s success can be seen in its steadily rising stock price over the past five years, as shown in figure 1A. Its financial ratio analyses, “a method of evaluating a company’s performance and financial well-being through ratios of accounting values, including short term solvency, asset utilization, profitability, and market value ratios” shows an overall positive trend of growth (Dess, Lumpkin, Eisner & McNamara, 2004, p. 476). One of the best indicators of ODFL’s success is its revenue growth “which illustrates sales increases/decreases over time. It is used to measure how fast a business is expanding” (Revenue Growth, 2013, n.p). ODFL’s revenue growth has increased from negative .1904 in 2009 to .1896 in 2010, and finally up to .2711 in 2012. This is a strong indication that ODFL is continuing to expand its business, increasing its client base and to create more overall revenue through its continued operations.
One of the reasons for ODFL’s success is its dedicated fleet of freight drivers. ODFL drivers pride themselves on being innovative, reliable, courteous, responsive, professional and ethical, for they are they are the heart and soul of the freight industry. “Trucking accounts for how we move 80 percent of cargo in our nation” (Bynum, 2012 para 1). ODFL however, is facing a potentially disastrous problem: as older truck drivers retire there is a growing shortage of new drivers willing to take their place. “The rigors of the job, changing attitudes toward
Interim Report
-------------------------------------------------
Old Dominion Freight Line Inc.
Bryson DeVan, Rachel Lassoff
Old Dominion Freight Line Inc., or ODFL, is a truckload motor carrier that operates in both the United States and North America. It provides regional, inter-regional, and national services across North America and has established itself as leader in the freight industry (Old dominion freight line Inc. Profile, n.d, n.p). ODFL’s success can be seen in its steadily rising stock price over the past five years, as shown in figure 1A. Its financial ratio analyses, “a method of evaluating a company’s performance and financial well-being through ratios of accounting values, including short term solvency, asset utilization, profitability, and market value ratios” shows an overall positive trend of growth (Dess, Lumpkin, Eisner & McNamara, 2004, p. 476). One of the best indicators of ODFL’s success is its revenue growth “which illustrates sales increases/decreases over time. It is used to measure how fast a business is expanding” (Revenue Growth, 2013, n.p). ODFL’s revenue growth has increased from negative .1904 in 2009 to .1896 in 2010, and finally up to .2711 in 2012. This is a strong indication that ODFL is continuing to expand its business, increasing its client base and to create more overall revenue through its continued operations.
One of the reasons for ODFL’s success is its dedicated fleet of freight drivers. ODFL drivers pride themselves on being innovative, reliable, courteous, responsive, professional and ethical, for they are they are the heart and soul of the freight industry. “Trucking accounts for how we move 80 percent of cargo in our nation” (Bynum, 2012 para 1). ODFL however, is facing a potentially disastrous problem: as older truck drivers retire there is a growing shortage of new drivers willing to take their place. “The rigors of the job, changing attitudes toward
References: Bynum, R. (2012, October 30). Truck drivers wanted: jobs hard to fill even in bad economy. Retrieved from http://www.huffingtonpost.com/2012/10/31/truck-drivers- wanted- jobs_n_2048995.html Dess, G., Lumpkin, G., Eisner, A., & McNamara, G Navera, T., & Simon, D. (2011, July 22). Truck driver jobs become hard to fill. Retrieved from http://www.daytondailynews.com/news/news/local/truck-driver-jobs-become-hard-to- fill/nMsyy/ Old dominion freight line Inc Revenue Growth (2013, April). Retrieved from http://ycharts.com/glossary/terms/revenue_growth Appendices: U.S. Department of Transportation, Federal Highway Administration, Office of Freight Management and Operations, Freight Analysis Framework, version 3.1, 2010. on the Internet at http://www.bls.gov/ooh/transportation-and-material-moving/heavy-and-tractor-trailer-truck-drivers.htm (visited April 17, 2013). on the Internet at http://www.bls.gov/ooh/transportation-and-material-moving/heavy-and-tractor-trailer-truck-drivers.htm (visited April 17, 2013).