O’Reilly Automotive Inc (ORLY)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	16,708,500	15,812,200	14,409,900	13,327,600	11,604,500
Total assets	US$ in thousands	14,893,700	14,603,800	12,628,000	11,718,700	11,596,600
Total asset turnover		1.12	1.08	1.14	1.14	1.00

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $16,708,500K ÷ $14,893,700K
= 1.12

The total asset turnover ratio of O’Reilly Automotive Inc has shown a generally increasing trend over the past five years. It was at 1.00 in December 31, 2020, and has consistently improved to 1.14 by the end of 2021 and has remained at the same level by the end of 2022. However, there was a slight decrease to 1.08 by December 31, 2023, followed by a recovery to 1.12 by the end of 2024.

This indicates that the company is generating $1.14 in sales for every $1 of assets in 2021 and 2022, showing efficient utilization of assets to generate revenue. The slight decrease in 2023 may suggest a temporary inefficiency in asset utilization, but the rebound in 2024 signifies a return to improved efficiency.

Overall, the increasing trend of the total asset turnover ratio reflects O’Reilly Automotive Inc's ability to efficiently manage and utilize its assets to generate revenue over the years, with some minor fluctuations in between.