Quick Ratio

The quick ratio measures a company’s ability to pay short-term liabilities using its most liquid assets (cash, marketable securities, accounts receivable).

ODFL’s current quick ratio of 1.40x means it has $1.40 in liquid assets for every $1 of current liabilities, indicating ample short-term liquidity. This far exceeds the sector median of 0.72x, placing ODFL in the 83rd percentile among peers — meaning only 17% of sector companies have a higher quick ratio. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 2.8%, from 1.44x in the prior quarter to 1.40x currently; no further trend data for the last eight quarters exists. While the high absolute level signals strong liquidity and low default risk, the slight QoQ decline could suggest a small tightening of working capital, though still well above the sector norm. This metric supports the cautious overall verdict because, despite excellent liquidity, a declining trend combined with the stock’s already cautious rating implies that investors may be watching for further erosion or other offsetting risks.

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