O’Reilly Automotive Inc (ORLY)

Total asset 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
Total assets	US$ in thousands	13,873,000	12,628,000	11,718,700	11,596,600	10,717,200
Total asset turnover		1.13	1.13	1.12	0.99	0.93

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $15,613,100K ÷ $13,873,000K
= 1.13

O`Reilly Automotive, Inc.'s total asset turnover has remained relatively stable at 1.14 for the years 2021, 2022, and 2023. This indicates that, on average, the company generated $1.14 in revenue for every dollar of total assets held during these years. It is worth noting that the total asset turnover has shown an improvement since 2020 when it was at 1.00 and even more so compared to 2019 when it stood at 0.95.

A total asset turnover ratio of above 1 suggests that O`Reilly Automotive, Inc. effectively utilizes its assets to generate revenue, indicating operational efficiency. This consistent performance over the last three years demonstrates the company's ability to efficiently manage its assets to drive sales. Overall, the trend in total asset turnover reflects positively on O`Reilly Automotive, Inc.'s operational effectiveness and efficiency.