O’Reilly Automotive Inc (ORLY)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
O’Reilly Automotive Inc's Inventory Turnover ratio has shown a consistent improvement over the years, indicating that the company is managing its inventory more efficiently. The ratio has increased from 1.35 in March 2020 to 1.60 in March 2023 before slightly decreasing to 1.60 in March 2024. This suggests that the company is selling through its inventory at a faster rate.
However, data for Receivables Turnover, Payables Turnover, and Working Capital Turnover ratios is not available, making it challenging to analyze the efficiency of the company's receivables collection, payables management, and working capital utilization over the specified periods.
In conclusion, based on the Inventory Turnover ratio analysis, O’Reilly Automotive Inc appears to be effectively managing its inventory levels to support its sales activities.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 228.11 | 223.50 | 219.76 | 223.94 | 220.61 | 221.46 | 226.54 | 228.52 | 226.39 | 222.29 | 221.77 | 217.79 | 213.32 | 217.96 | 222.88 | 228.41 | 241.61 | 241.99 | 255.68 | 270.20 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data on O’Reilly Automotive Inc's activity ratios, we can analyze the following:
1. Days of Inventory on Hand (DOH):
- The DOH decreased from 270.20 days as of March 31, 2020, to 220.61 days as of December 31, 2024.
- A decreasing trend in DOH indicates that the company is managing its inventory levels more effectively over the years.
- However, there was a slight increase in DOH from 219.76 days as of June 30, 2024, to 228.11 days as of December 31, 2024.
2. Days of Sales Outstanding (DSO):
- The data shows "— days" for DSO for all periods, indicating that specific information on sales outstanding days is not available.
- This lack of data prevents a detailed analysis of the efficiency of the company in collecting accounts receivable.
3. Number of Days of Payables:
- Similar to DSO, no specific information is provided for the number of days of payables for any period.
- Without this data, it is challenging to assess how efficiently O'Reilly Automotive manages its trade payables.
In conclusion, while the DOH ratio suggests that O'Reilly Automotive has improved its inventory management efficiency over the years, the lack of information on DSO and payables days hampers a comprehensive analysis of the company's overall working capital management. Further data on sales outstanding and payables would be necessary to gain a more complete understanding of O’Reilly Automotive Inc's activity ratios.
See also:
O’Reilly Automotive Inc Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 3.24 | 3.25 | 2.20 | 2.18 | 2.20 | 2.18 | 2.15 | 2.07 | 2.03 | 2.97 | 2.83 | 2.76 | 2.65 | 2.55 |
| Total asset turnover | 1.12 | 1.13 | 1.13 | 1.13 | 1.08 | 1.15 | 1.15 | 1.14 | 1.14 | 1.15 | 1.14 | 1.15 | 1.14 | 1.09 | 1.05 | 1.03 | 1.00 | 0.90 | 0.91 | 0.92 |
The Fixed Asset Turnover ratio for O’Reilly Automotive Inc has shown a consistent increase from 2.55 in March 2020 to 2.20 in June 2022, indicating that the company has been able to generate more revenue from its fixed assets over time. However, there was a notable spike in the ratio to 3.25 in March 2023, suggesting a significant improvement in efficiency in utilizing fixed assets. The ratio then stabilized around 2.20 from September 2022 to December 2024.
On the other hand, the Total Asset Turnover ratio started at 0.92 in March 2020 and gradually increased to 1.14 in December 2021. It fluctuated slightly between 1.14 and 1.15 from March 2022 to June 2023 before dropping to 1.08 in December 2023 and eventually recovering to 1.13 by March 2024. This ratio measures the company’s ability to generate sales from its total assets, and the fluctuations indicate varying levels of efficiency in asset utilization during the period under review.
Overall, the analysis of these long-term activity ratios suggests that O’Reilly Automotive Inc has generally improved its efficiency in utilizing both fixed and total assets to generate revenue, with some fluctuations observed along the way. Further assessment of the company's operations and industry trends would provide a more comprehensive understanding of its long-term asset management performance.
See also:
O’Reilly Automotive Inc Long-term (Investment) Activity Ratios (Quarterly Data)