O’Reilly Automotive Inc (ORLY)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 228.11 | 220.61 | 226.39 | 213.32 | 241.61 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 228.11 | 220.61 | 226.39 | 213.32 | 241.61 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 228.11 + — – —
= 228.11
The cash conversion cycle of O’Reilly Automotive Inc has shown a fluctuating trend over the past five years. Starting at 241.61 days on December 31, 2020, the cycle decreased to 213.32 days on December 31, 2021, indicating an improvement in the company's management of cash flow from operating activities. However, the cycle increased slightly to 226.39 days on December 31, 2022, before further decreasing to 220.61 days on December 31, 2023.
As of December 31, 2024, the cash conversion cycle stood at 228.11 days, showing a slight increase from the previous year. Overall, the company has been able to streamline its cash conversion cycle over the years, which suggests efficient management of inventory, receivables, and payables. It is important that the company continues to monitor and optimize its cash conversion cycle to enhance liquidity and operational efficiency.
Peer comparison
Dec 31, 2024