O’Reilly Automotive Inc (ORLY)

Current ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total current assets	US$ in thousands	5,839,900	5,698,290	5,679,490	5,599,700	5,558,300	5,377,710	5,311,270	5,187,990	5,048,260	4,760,760	4,799,870	4,523,380	4,504,260	4,562,210	4,738,350	4,687,640	4,499,790	5,533,440	4,784,480	4,201,800
Total current liabilities	US$ in thousands	8,283,500	8,185,160	8,123,210	7,888,390	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
Current ratio		0.71	0.70	0.70	0.71	0.73	0.69	0.69	0.71	0.71	0.70	0.75	0.73	0.77	0.76	0.82	0.79	0.86	0.98	0.95	0.91

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 shown a declining trend over the past few years, starting at 0.91 as of March 31, 2020, and fluctuating between 0.70 and 0.98 up to December 31, 2024. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A ratio below 1 indicates that the company may have difficulty covering its short-term liabilities with its current assets alone.

The gradual decrease in the current ratio from 2020 to 2024 may suggest potential liquidity concerns or challenges in managing short-term obligations. It is important for investors and stakeholders to closely monitor changes in the current ratio to assess O'Reilly Automotive Inc's liquidity position and ability to meet its financial obligations in the short term. Management may need to implement strategies to improve the current ratio, such as increasing current assets or reducing current liabilities, to ensure financial stability and mitigate liquidity risks.