O’Reilly Automotive Inc (ORLY)

Days of sales outstanding (DSO)

		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
Receivables turnover		30.40	27.83	29.39	30.97	30.36	29.44	30.05	33.21	34.22	32.40	32.31	31.80	34.68	33.40	32.12	33.19	34.03	32.92	28.53	30.17
DSO	days	12.00	13.11	12.42	11.79	12.02	12.40	12.15	10.99	10.67	11.26	11.30	11.48	10.52	10.93	11.36	11.00	10.73	11.09	12.79	12.10

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 30.40
= 12.00

To analyze O`Reilly Automotive, Inc.'s days of sales outstanding (DSO) trend, we observed a consistent pattern of DSO figures over the past eight quarters. The DSO metric measures the average number of days it takes for a company to collect revenue after making a sale. In this case, O`Reilly Automotive, Inc. has been improving its collection efficiency as indicated by the decreasing trend in DSO figures from Q1 2022 to Q4 2023.

Specifically, the DSO decreased from 12.06 days in Q2 2022 to 11.69 days in Q1 2023, reflecting a shorter collection period for sales during that time frame. However, there was a slight uptick in DSO to 13.00 days in Q3 2023, followed by a decline to 11.90 days in Q4 2023. This suggests that the company may have faced some challenges in collections in the third quarter but managed to improve its efficiency in the fourth quarter.

Overall, the decreasing trend in DSO indicates that O`Reilly Automotive, Inc. has been managing its accounts receivable effectively, potentially enhancing its cash flow and liquidity position. It is essential for the company to continue monitoring and improving its DSO performance to ensure efficient working capital management and sustainable financial health.