O’Reilly Automotive Inc (ORLY)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	279,132	108,583	362,113	465,640	40,406
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	7,661,350	7,063,820	5,874,620	5,262,420	4,469,430
Cash ratio		0.04	0.02	0.06	0.09	0.01

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($279,132K + $—K) ÷ $7,661,350K
= 0.04

The cash ratio for O'Reilly Automotive, Inc. has fluctuated over the past five years. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without needing to rely on additional financing.

In 2023, the cash ratio of O'Reilly Automotive, Inc. stood at 0.05, which indicates that the company had $0.05 in cash and cash equivalents for every $1 of short-term liabilities. This was an improvement from the previous year's cash ratio of 0.03 but lower compared to 2021 and 2020.

The cash ratio was highest in 2020 at 0.10, suggesting a better position to cover short-term obligations with available cash. Conversely, the lowest cash ratio was recorded in 2019 at 0.02, highlighting a weaker liquidity position in that year.

Overall, while the cash ratio for O'Reilly Automotive, Inc. has varied over the years, it is essential to consider other liquidity ratios and financial metrics to gain a comprehensive understanding of the company's financial health and ability to manage short-term obligations effectively.