O’Reilly Automotive Inc (ORLY)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	12,631,100	11,467,800	10,427,900	9,193,860	8,231,160
Payables	US$ in thousands	6,091,700	5,881,160	4,695,310	4,184,660	3,604,720
Payables turnover		2.07	1.95	2.22	2.20	2.28

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $12,631,100K ÷ $6,091,700K
= 2.07

The payables turnover ratio for O`Reilly Automotive, Inc. has fluctuated over the past five years, ranging from 1.20 in 2019 to 1.34 in 2021. This ratio measures the efficiency with which the company pays its suppliers. A higher payables turnover ratio indicates that the company is managing its accounts payables effectively by paying suppliers more frequently within a given period.

In 2023, the payables turnover ratio decreased slightly to 1.27, indicating a moderate decrease in the efficiency of the company's accounts payables management compared to the previous year. This decrease could be attributed to changes in the company's payment policies or delays in payments to suppliers.

Overall, while the payables turnover ratio of O`Reilly Automotive, Inc. fluctuated slightly over the years, it generally remained at a moderate level, suggesting that the company has been able to effectively manage its payables and maintain a balance in its supplier relationships.