O’Reilly Automotive Inc (ORLY)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	1.60	1.65	1.61	1.71	1.51
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	—	—	—	—	—

Based on the provided data for O'Reilly Automotive Inc, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. O'Reilly Automotive's inventory turnover has fluctuated over the years, ranging from 1.51 in 2020 to 1.71 in 2021, and then slightly decreasing to 1.60 in 2024. A higher turnover ratio generally indicates that the company is selling its inventory more effectively.

2. Receivables Turnover:
- Unfortunately, there is no data available for the receivables turnover ratio for O'Reilly Automotive. This ratio would have helped in understanding how quickly the company collects its accounts receivable, which is essential for cash flow management.

3. Payables Turnover:
- Similarly, there is no data provided for the payables turnover ratio. This ratio would have indicated how quickly the company pays its suppliers, which can impact its working capital management.

4. Working Capital Turnover:
- The working capital turnover ratio shows how well a company is utilizing its working capital to generate sales. Unfortunately, there is no data given for O'Reilly Automotive's working capital turnover, which would have been helpful in assessing the efficiency of its working capital management.

In summary, O'Reilly Automotive Inc has shown varying levels of inventory turnover over the years, indicating mixed efficiency in managing its inventory levels. However, due to the lack of data on receivables turnover, payables turnover, and working capital turnover, a complete analysis of the company's overall activity ratios is limited.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	228.11	220.61	226.39	213.32	241.61
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

The Days of Inventory on hand (DOH) ratio for O’Reilly Automotive Inc has shown a downward trend over the years, decreasing from 241.61 days as of December 31, 2020, to 228.11 days as of December 31, 2024. This suggests that the company has been managing its inventory more efficiently by reducing the number of days it takes to sell its inventory.

The Days of Sales Outstanding (DSO) and Number of Days of Payables ratios are not provided in the data, indicated as "-- days" for each year. Without this information, it is difficult to assess the efficiency of O’Reilly Automotive Inc in collecting receivables and managing payables.

Overall, the decreasing trend in the Days of Inventory on hand ratio indicates an improvement in inventory management efficiency for O’Reilly Automotive Inc, but a complete analysis of the company's activity ratios would require additional information on its DSO and Number of Days of Payables ratios.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	2.20	2.15	2.83
Total asset turnover	1.12	1.08	1.14	1.14	1.00

O’Reilly Automotive Inc's fixed asset turnover ratio has shown a declining trend over the years, from 2.83 in December 2020 to 2.15 in December 2021, and then slightly increasing to 2.20 in December 2022. However, the data for December 2023 and December 2024 is not available.

The fixed asset turnover ratio indicates how efficiently the company is generating sales from its investment in fixed assets. A higher ratio is generally preferable as it suggests that the company is effectively utilizing its fixed assets to generate revenue. The decreasing trend from 2020 to 2021 may indicate challenges in optimizing the utilization of fixed assets, but the subsequent increase in 2022 shows some improvement in this aspect.

Regarding the total asset turnover ratio, it has shown an increasing trend from 1.00 in December 2020 to 1.14 in both December 2021 and December 2022, followed by a slight decrease to 1.08 in December 2023, and then a rebound to 1.12 in December 2024.

The total asset turnover ratio measures how efficiently a company utilizes its total assets to generate revenue. An increasing trend in this ratio indicates that the company is generating more sales relative to its total assets, which is generally a positive sign of operational efficiency.

Overall, the trends in both fixed asset turnover and total asset turnover ratios suggest varying levels of efficiency in utilizing assets to generate sales over the years, with fluctuations indicating changes in operational performance and potentially the company's strategy in managing its asset base.