O’Reilly Automotive Inc (ORLY)

Days of inventory on hand (DOH)

		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
DOH	days	228.11	220.61	226.39	213.32	241.61

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.60
= 228.11

The days of inventory on hand (DOH) for O’Reilly Automotive Inc has shown a decreasing trend over the years.

As of December 31, 2020, the company had an inventory turnover period of 241.61 days, which decreased to 213.32 days by December 31, 2021. The trend continued with further reductions to 226.39 days by December 31, 2022, 220.61 days by December 31, 2023, and 228.11 days by December 31, 2024.

The decreasing trend in DOH indicates that O’Reilly Automotive has been more efficient in managing its inventory levels over the years. This could be due to improved inventory management practices, better forecasting methods, or streamlined operations leading to quicker inventory turnover.

Overall, the declining trend in DOH reflects positively on the company's operational efficiency and suggests effective inventory management strategies are in place.