O’Reilly Automotive Inc (ORLY)

Payables 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
Payables	US$ in thousands	6,091,700	6,199,820	6,219,840	6,055,990	5,881,160	5,574,100	5,258,710	4,943,280	4,695,310	4,608,550	4,583,570	4,318,460	4,184,660	4,083,800	3,936,400	3,758,200	3,604,720	3,606,570	3,516,150	3,438,680
Payables turnover		2.07	2.01	1.96	1.95	1.95	2.00	2.06	2.16	2.22	2.19	2.15	2.21	2.20	2.19	2.18	2.21	2.28	2.24	2.26	2.28

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $12,631,080K ÷ $6,091,700K
= 2.07

O`Reilly Automotive, Inc.'s payables turnover ratio has shown some fluctuation over the past eight quarters. The payables turnover ratio measures the efficiency with which a company pays its suppliers. A higher ratio indicates that the company is paying its suppliers more quickly.

In the most recent quarter, Q4 2023, the payables turnover ratio was 1.27, which was higher compared to the previous quarter, indicating that O`Reilly Automotive, Inc. paid its suppliers more efficiently during this period. However, it is essential to note that the ratio fluctuated between 1.20 and 1.30 in the preceding quarters, showing that the company's payment practices have varied slightly.

Overall, a payables turnover ratio of around 1.20 to 1.30 suggests that O`Reilly Automotive, Inc. maintains a relatively steady pace in paying its suppliers. A consistent payables turnover ratio could reflect good supplier relationships and effective cash flow management within the company. Further analysis and context are needed to understand the drivers behind the fluctuations in the payables turnover ratio.