O’Reilly Automotive Inc (ORLY)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	15,613,100	14,256,600	13,182,300	11,440,400	10,003,700
Property, plant and equipment	US$ in thousands	5,036,980	4,424,040	4,213,520	4,094,920	3,948,200
Fixed asset turnover		3.10	3.22	3.13	2.79	2.53

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,613,100K ÷ $5,036,980K
= 3.10

The fixed asset turnover ratio measures a company's efficiency in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.

In the case of O`Reilly Automotive, Inc., the fixed asset turnover has shown a generally increasing trend over the past five years. The ratio ranged from 2.57 in 2019 to 3.26 in 2022, demonstrating a consistent improvement in the company's efficiency in utilizing its fixed assets to generate revenue.

In 2023, the fixed asset turnover ratio declined slightly to 3.14. Although the ratio decreased from the previous year, it remains relatively high, indicating that O`Reilly Automotive continues to effectively utilize its fixed assets to generate sales revenue.

Overall, the trend in O`Reilly Automotive's fixed asset turnover suggests that the company has been successful in managing and leveraging its fixed assets efficiently to drive revenue growth over the years.