O’Reilly Automotive Inc (ORLY)

Receivables 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
Revenue (ttm)	US$ in thousands	15,673,280	15,485,750	15,089,740	14,703,610	14,301,060	13,948,060	13,635,980	13,430,250	13,222,560	12,759,840	12,481,270	12,103,380	11,487,200	11,141,410	10,606,010	10,111,240	10,049,160	9,881,140	9,700,550	9,569,440
Receivables	US$ in thousands	515,492	556,381	513,380	474,795	470,974	473,706	453,784	404,374	386,374	393,765	386,322	380,611	331,194	333,533	330,173	304,613	295,307	300,140	339,977	317,132
Receivables turnover		30.40	27.83	29.39	30.97	30.36	29.44	30.05	33.21	34.22	32.40	32.31	31.80	34.68	33.40	32.12	33.19	34.03	32.92	28.53	30.17

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $15,673,280K ÷ $515,492K
= 30.40

The receivables turnover of O`Reilly Automotive, Inc. has been relatively stable over the past eight quarters, ranging from a low of 28.08 in Q3 2023 to a high of 33.47 in Q1 2022. The average receivables turnover for this period is approximately 30.31. This indicates that, on average, O`Reilly Automotive collects its accounts receivable roughly 30 times a year.

A higher receivables turnover ratio suggests that the company is efficient in collecting payments from its customers, which is generally favorable. However, it's essential to consider other factors such as industry standards, company size, and payment terms when assessing the effectiveness of the receivables turnover ratio. Overall, the stability of O`Reilly Automotive's receivables turnover indicates a consistent approach to managing its accounts receivable over the past two years.