FedEx Freight cuts costs but improves profit as US LTL volumes shrink

[DOTFXF]

anyone know the O/R?

ST I don't need to butt in just trying to distinguish the difference between the O/R (operating ratio) which is sometimes confused with the O/M ( operating margin). So FedEx Freights operating margin for 3rd quarter 2023 was 17.7. If you take the margin and subtract it from 100 it will equal the approximate O/R which in this case would be 82.3. That means FedEx Freight is making about 18 cents on the dollar.

20 years ago a O/R of 95 or a O/M of 5.00 was considered excellent. FedEx Freight is crushing it as of late. I believe the only other LTL with better results is Old Dominion with a O/R in the mid to high 70s

If this was the 4th quarter with a margin of 17.7 we would have a max bonus payout again. Hope this helps and as Paul Harvey used to say "GOOD DAY" $$$$$

 

[almost13ranch]

Anything is possible in this circus!

What is operating ratio?

This AskWaves column explains why investors and other transportation stakeholders look at operating ratio as a way to gauge a company’s financial health.

www.freightwaves.com

And you can take the clown emoji and shove it.

 

[Boats n hoes]

It's legit. I understand that your trying to understand it but it's not one of the guys on here making it up. We got an operating margin of 17.7. Pretty wild considering q3 winter is always historically the worst quarter out there. Basically we can do below average in q4 which is historically one of the best quarters and still get max bonus come July. Pretty crazy

 

[DOTFXF]

My point is that an OR is whatever the percentage of profit is minus 100. An OR is a percentage. I don’t doubt your statistic, it’s just calling that an OR is wrong. The OR for the example you posted would be correctly stated as an 82.3.

If the employees worked for free and the trucks ran on air, an OR of 17.7 might be possible.

BTW, an 82 is not a bad number.

I think think some carrier will eventually hit the 60s with a lot of help from robotic equipment. We'll be long gone when that happens.

 

[almost13ranch]

I think think some carrier will eventually hit the 60s with a lot of help from robotic equipment. We'll be long gone when that happens.

You might be right, OD is in the 70’s now.

 

[DOTFXF]

it is and was.......freight OR 17.7% for 3rd quarter...look it up

Here is the print out.

Quick Share

1 file (614 KB)

linksharing.samsungcloud.com

 

[truckingBORED]

I don’t think that’s possible.

What is operating ratio?

This AskWaves column explains why investors and other transportation stakeholders look at operating ratio as a way to gauge a company’s financial health.

www.freightwaves.com

And you can take the clown emoji and shove it.

I said, circus. Clowns frequent those. The emoji amused me. I was actually agreeing with you. Sorry if my humor offended you.

 

[nasvegas]

Anything is possible in this circus!

 

[SwampRatt]

My point is that an OR is whatever the percentage of profit is minus 100. An OR is a percentage. I don’t doubt your statistic, it’s just calling that an OR is wrong. The OR for the example you posted would be correctly stated as an 82.3.

If the employees worked for free and the trucks ran on air, an OR of 17.7 might be possible.

BTW, an 82 is not a bad number.

Operating MARGIN vs operating RATIO.

 

[almost13ranch]

Operating MARGIN vs operating RATIO.

I know the difference. I was posting about #7 and #8, that poster didn’t know the difference.

 

[truckingBORED]

I know the difference. I was posting about #7 and #8, that poster didn’t know the difference.

You’re certain of that?

 

[almost13ranch]

You’re certain of that?

No, maybe not. One poster asked for the OR and the second responded with the OM.

 

[nasvegas]

No, maybe not. One poster asked for the OR and the second responded with the OM.

All this BS about to make me have a BM...

 

[Warlock]

My point is that an OR is whatever the percentage of profit is minus 100. An OR is a percentage. I don’t doubt your statistic, it’s just calling that an OR is wrong. The OR for the example you posted would be correctly stated as an 82.3.

If the employees worked for free and the trucks ran on air, an OR of 17.7 might be possible.

BTW, an 82 is not a bad number.

You mean they dont run on unicorn farts and rainbows?

The hell you say

 

[silent trucker]

I know the difference. I was posting about #7 and #8, that poster didn’t know the difference.

I know the difference. I worked for freight for 40 years. I just wanted to know the number because I couldn't find it in any of the press releases I found on google. I didn't object because your post was informative for any new people who don't know the difference.

 

[truckingBORED]

I know the difference. I worked for freight for 40 years. I just wanted to know the number because I couldn't find it in any of the press releases I found on google. I didn't object because your post was informative for any new people who don't know the difference.

You have a much thicker skin than me! I was like, WTF?, over.

 

[silent trucker]

You have a much thicker skin than me! I was like, WTF?, over.

I'm retired. It's hard to get pissed off when you have nothing to do and all day to do it. I'm surprisingly good at doing nothing according to my wife.

 

[seabreeze]

I'm retired. It's hard to get pissed off when you have nothing to do and all day to do it. I'm surprisingly good at doing nothing according to my wife.

Your life will become more simple when you learn you have finished, worked for me.

 

[The Point]

I'm retired. It's hard to get pissed off when you have nothing to do and all day to do it. I'm surprisingly good at doing nothing according to my wife.

Do some Doordash or Uber if you need to stay busy.

 

[almost13ranch]

Your life will become more simple when you learn you have finished, worked for me.

My to do list looks like a roll of paper towels.