O’Reilly Automotive Inc (ORLY)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		2.07	1.95	2.22	2.20	2.28
Number of days of payables	days	176.03	187.19	164.35	166.13	159.85

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 2.07
= 176.03

The number of days of payables for O`Reilly Automotive, Inc. has shown some fluctuations over the past five years. It increased from 276.69 days in 2019 to 276.76 days in 2020, but then decreased to 271.70 days in 2021. However, there was a significant increase to 305.43 days in 2022, before declining to 288.48 days in 2023.

The number of days of payables indicates the average number of days a company takes to pay its suppliers and vendors. A higher number of days of payables could suggest that the company is taking longer to pay its bills, potentially indicating liquidity issues or inefficiencies in managing its cash flow. On the other hand, a lower number of days of payables may indicate that the company is paying its suppliers more quickly, which could strain its cash reserves.

Overall, O`Reilly Automotive, Inc. has experienced some variability in its number of days of payables over the past five years. Further analysis and comparison with industry benchmarks would be beneficial to understand the implications of these fluctuations on the company's financial performance and cash flow management.