O’Reilly Automotive Inc (ORLY)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		30.29	30.27	34.12	34.54	33.88
DSO	days	12.05	12.06	10.70	10.57	10.77

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 30.29
= 12.05

The days of sales outstanding (DSO) measure for O`Reilly Automotive, Inc. has shown a slight fluctuation over the past five years. In 2023, DSO increased marginally to 11.90 days from 11.91 days in 2022. However, compared to 2021 where DSO stood at 10.56 days, there has been an overall increase in the number of days it takes for O`Reilly Automotive to collect its accounts receivable. It is worth noting that the DSO was slightly lower in 2020 and 2019 at 10.39 days and 10.59 days, respectively.

The gradual increase in DSO over the years might indicate potential challenges in collecting receivables promptly, which could have implications for the company's cash flow management and liquidity position. Further analysis and comparison with industry benchmarks could provide deeper insights into O`Reilly Automotive's effectiveness in managing its accounts receivable and overall financial health.