O’Reilly Automotive Inc (ORLY)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.71	2.63	2.83	2.52	2.38
DOH	days	134.61	138.74	129.03	145.03	153.17

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.71
= 134.61

The days of inventory on hand (DOH) for O`Reilly Automotive, Inc. have shown fluctuations over the past five years. The trend indicates that the company has been able to manage its inventory more efficiently in recent years.

In 2019, the DOH was at 265.12 days, reflecting a relatively high level of inventory on hand. However, from 2019 to 2023, there has been a consistent decline in DOH. This downward trend indicates that the company has been improving its inventory management practices, leading to a lower number of days it takes to sell its inventory.

In 2023, O`Reilly Automotive, Inc. had a DOH of 220.61 days, which is lower compared to the previous years. This suggests that the company has been operating with a leaner inventory position, potentially reducing holding costs and freeing up cash that would otherwise be tied up in excess inventory.

Overall, the decreasing trend in DOH implies that O`Reilly Automotive, Inc. is becoming more efficient in managing its inventory levels, which can contribute to improved profitability and better utilization of resources.