O’Reilly Automotive Inc (ORLY)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	5,839,900	5,558,300	5,048,260	4,504,260	4,499,790
Total current liabilities	US$ in thousands	8,283,500	7,661,350	7,063,820	5,874,620	5,262,420
Current ratio		0.71	0.73	0.71	0.77	0.86

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,839,900K ÷ $8,283,500K
= 0.71

The current ratio of O’Reilly Automotive Inc has been showing a declining trend over the past few years. As of December 31, 2020, the current ratio was 0.86, indicating that the company had $0.86 in current assets for every $1 in current liabilities. However, this ratio decreased to 0.77 by December 31, 2021, and further decreased to 0.71 by December 31, 2022, before ticking up slightly to 0.73 by December 31, 2023. As of December 31, 2024, the current ratio remained at 0.71.

A current ratio below 1 suggests that O’Reilly Automotive Inc may be facing liquidity challenges, as it may not have enough current assets to cover its current liabilities. This trend indicates a potential risk of difficulties in meeting short-term obligations and may require the company to consider strategies to improve its liquidity position. Further analysis of the composition of current assets and liabilities is recommended to gain deeper insights into the company's financial health.