O’Reilly Automotive Inc (ORLY)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	130,245	279,132	108,583	362,113	465,640
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	8,283,500	7,661,350	7,063,820	5,874,620	5,262,420
Cash ratio		0.02	0.04	0.02	0.06	0.09

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($130,245K + $—K) ÷ $8,283,500K
= 0.02

The cash ratio for O’Reilly Automotive Inc has shown a gradual decrease over the five-year period from 2020 to 2024. In 2020, the cash ratio was at 0.09, indicating that the company had $0.09 in cash for every $1 of current liabilities. However, by the end of 2024, the cash ratio had decreased to 0.02, signaling a decline in the company's ability to cover its short-term obligations solely with its available cash.

This downward trend in the cash ratio may raise concerns about O'Reilly Automotive's liquidity position and ability to meet its immediate financial obligations without relying on other sources of funding. It suggests that the company may need to manage its cash resources more efficiently or consider alternative financing options to ensure its short-term solvency. Further analysis of the company's cash flow management and liquidity position would be advisable to determine the root causes of this trend and potential strategies for improvement.