O’Reilly Automotive Inc (ORLY)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	15,613,100	14,256,600	13,182,300	11,440,400	10,003,700
Receivables	US$ in thousands	515,492	470,974	386,374	331,194	295,307
Receivables turnover		30.29	30.27	34.12	34.54	33.88

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $15,613,100K ÷ $515,492K
= 30.29

The receivables turnover ratio, which measures how efficiently a company is collecting its accounts receivable during a period, for O`Reilly Automotive, Inc. has been relatively stable over the past five years. The average annual turnover for the period was approximately 33.10 times, indicating that, on average, O`Reilly Automotive collects its accounts receivable about 33 times in a year.

A high receivables turnover ratio suggests that O`Reilly Automotive is efficient in collecting payments from its customers and managing its accounts receivable. The minor fluctuations in the ratio over the years do not indicate any significant concerns regarding the company's ability to collect outstanding amounts from its customers.

Overall, O`Reilly Automotive's consistent and relatively high receivables turnover ratio reflects a sound credit and collection policy, contributing to its overall financial health and operational efficiency.