O’Reilly Automotive Inc (ORLY)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	8,153,990	8,024,010	7,953,720	7,831,990	7,707,460	7,633,410	7,454,150	7,257,760	7,028,160	6,794,580	6,592,250	6,445,450	6,307,610	6,107,290	5,973,130	5,788,330	5,518,810	5,320,560	5,037,390	4,804,560
Inventory	US$ in thousands	5,095,800	4,913,240	4,788,690	4,805,160	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
Inventory turnover		1.60	1.63	1.66	1.63	1.65	1.65	1.61	1.60	1.61	1.64	1.65	1.68	1.71	1.67	1.64	1.60	1.51	1.51	1.43	1.35

December 31, 2024 calculation

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

Inventory turnover measures how many times a company's inventory is sold and replaced over a specific period. A higher inventory turnover indicates that inventory is selling quickly, which is generally positive. Looking at the data provided for O'Reilly Automotive Inc, we can see a gradual improvement in inventory turnover from 1.35 in March 2020 to 1.60 in March 2024.

The trend shows a consistent increase in inventory turnover up to the first quarter of 2021, reaching a peak of 1.71 in December 2021. After that, there is a slight decline in inventory turnover, fluctuating around the range of 1.60 to 1.65 until December 2024.

Overall, O'Reilly Automotive Inc has shown relatively stable inventory turnover ratios over the years, indicating efficient management of its inventory levels. Further analysis can be done by comparing these ratios with industry benchmarks to gain a deeper understanding of the company's performance in managing its inventory effectively.