O’Reilly Automotive Inc (ORLY)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	5,558,300	5,048,260	4,504,260	4,499,790	3,833,660
Total current liabilities	US$ in thousands	7,661,350	7,063,820	5,874,620	5,262,420	4,469,430
Current ratio		0.73	0.71	0.77	0.86	0.86

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,558,300K ÷ $7,661,350K
= 0.73

The current ratio of O`Reilly Automotive, Inc. has gradually decreased over the past five years, from 0.86 in both 2019 and 2020 to 0.73 in 2023. This indicates a weakening ability of the company to meet its short-term obligations with its current assets. A current ratio below 1 suggests that O`Reilly Automotive may have difficulties in paying off its current liabilities with its current assets alone. This trend raises concerns about the company's liquidity position and its ability to cover its short-term debts in the near future. Further investigation into the components of current assets and liabilities is recommended to understand the reasons behind the declining current ratio and to assess the company's overall financial health.