O’Reilly Automotive Inc (ORLY)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	8,153,990	7,707,450	7,028,150	6,307,610	5,518,800
Inventory	US$ in thousands	5,095,800	4,658,370	4,359,130	3,686,380	3,653,200
Inventory turnover		1.60	1.65	1.61	1.71	1.51

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $8,153,990K ÷ $5,095,800K
= 1.60

Based on the data provided for O’Reilly Automotive Inc's inventory turnover, we observe fluctuations in this ratio over the years.

- As of December 31, 2020, the inventory turnover was 1.51, indicating that the company's inventory was sold and replaced approximately 1.51 times during that year.
- By December 31, 2021, the inventory turnover increased to 1.71, suggesting an improvement in the efficiency of managing inventory.
- However, in the following years, there were some variations:
- December 31, 2022: The inventory turnover decreased slightly to 1.61.
- December 31, 2023: The ratio improved to 1.65.
- December 31, 2024: The inventory turnover dropped to 1.60.

Overall, the trend in inventory turnover indicates some fluctuations in how efficiently O’Reilly Automotive Inc is managing its inventory levels. It is important to further investigate the reasons behind these fluctuations to assess the impact on the company's operations and financial performance.