O’Reilly Automotive Inc (ORLY)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		2.71	2.70	2.63	2.60	2.63	2.69	2.71	2.77	2.83	2.77	2.70	2.63	2.52	2.53	2.43	2.34	2.38	2.42	2.44	2.43
DOH	days	134.61	135.38	138.69	140.17	138.74	135.75	134.66	131.75	129.03	131.82	135.08	138.57	145.03	144.12	150.09	156.07	153.17	151.13	149.69	150.32

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 some fluctuation over the past eight quarters. As of Q4 2023, the company had 220.61 days of inventory on hand, which was a slight decrease compared to the previous quarter's 221.46 days.

Looking at the trend over the last two years, the DOH ranged from a low of 217.79 days in Q1 2022 to a high of 228.52 days in Q1 2023. The average DOH over this period was approximately 222 days.

A lower DOH indicates that the company is selling its inventory at a faster pace, which is generally positive as it implies efficient inventory management and less risk of obsolete inventory. Conversely, a higher DOH may suggest overstocking or slower inventory turnover, potentially tying up cash in excess inventory.

It is crucial for O`Reilly Automotive, Inc. to continuously monitor its DOH and strive to strike a balance between having enough inventory to meet customer demand and avoiding excess inventory holding costs.