O’Reilly Automotive Inc (ORLY)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	12,631,080	12,487,280	12,175,540	11,832,510	11,467,770	11,126,200	10,856,750	10,654,580	10,427,890	10,097,980	9,855,630	9,540,710	9,193,850	8,934,020	8,581,560	8,318,260	8,231,150	8,087,500	7,954,910	7,840,030
Inventory	US$ in thousands	4,658,370	4,631,510	4,626,410	4,543,980	4,359,130	4,137,940	4,005,380	3,845,880	3,686,380	3,646,990	3,647,410	3,622,200	3,653,200	3,527,500	3,528,680	3,556,720	3,454,090	3,348,630	3,262,430	3,228,900
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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,631,080K ÷ $4,658,370K
= 2.71

O`Reilly Automotive, Inc.'s inventory turnover has been relatively consistent over the past eight quarters, ranging from 1.60 to 1.68 times. This indicates that the company is efficiently managing its inventory by effectively selling and replenishing its stock. A consistent inventory turnover ratio suggests that the company is properly balancing inventory levels to meet customer demand without overstocking. Despite minor fluctuations, the overall trend shows stability in O`Reilly Automotive's inventory management practices. Further analysis and comparison with industry averages could provide additional insights into the company's inventory management efficiency.