O’Reilly Automotive Inc (ORLY)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	279,132	82,664	57,880	59,872	108,583	67,060	253,904	191,546	362,113	449,302	631,618	610,880	465,640	1,627,100	872,423	287,067	40,406	42,804	55,809	56,717
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	7,661,350	7,831,080	7,693,700	7,356,310	7,063,820	6,841,480	6,413,190	6,170,870	5,874,620	5,989,750	5,771,610	5,903,080	5,262,420	5,669,380	5,022,140	4,624,930	4,469,430	4,580,850	4,360,390	4,326,330
Cash ratio		0.04	0.01	0.01	0.01	0.02	0.01	0.04	0.03	0.06	0.08	0.11	0.10	0.09	0.29	0.17	0.06	0.01	0.01	0.01	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 of O`Reilly Automotive, Inc. has shown fluctuations over the past eight quarters. The cash ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents. A higher cash ratio is generally preferred as it indicates a stronger ability to meet short-term liabilities.

In Q4 2023, the cash ratio was 0.05, which indicates that the company had $0.05 in cash and cash equivalents for every $1 of current liabilities. This suggests an improvement compared to the previous quarters, where the cash ratio ranged between 0.02 and 0.04.

The cash ratio was lower in Q2 and Q3 of 2022 at 0.02, indicating a weaker liquidity position during that period. However, in Q2 2022, the cash ratio spiked to 0.05, suggesting a significant increase in the company's ability to cover short-term obligations with cash on hand.

Overall, a cash ratio of 0.05 in Q4 2023 demonstrates an improved liquidity position for O`Reilly Automotive, Inc. compared to previous quarters, indicating a strengthening ability to meet its short-term financial obligations.