O’Reilly Automotive Inc (ORLY)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	279,132	108,583	362,113	465,640	40,406
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	515,492	470,974	386,374	331,194	295,307
Total current liabilities	US$ in thousands	7,661,350	7,063,820	5,874,620	5,262,420	4,469,430
Quick ratio		0.10	0.08	0.13	0.15	0.08

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($279,132K + $—K + $515,492K) ÷ $7,661,350K
= 0.10

The quick ratio of O`Reilly Automotive, Inc. has fluctuated over the last five years, ranging from 0.08 in 2019 to 0.16 in 2020. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities. O`Reilly's quick ratio has been consistently below 1 over the past five years, suggesting potential liquidity challenges.

The decrease in the quick ratio from 2020 to 2023 may signify a decrease in the company's ability to cover its short-term obligations with its current quick assets. Investors and analysts might be concerned about the company's liquidity position based on this trend.

Overall, the quick ratio analysis indicates that O`Reilly Automotive, Inc. may need to closely monitor its liquidity position and take actions to improve its ability to meet short-term obligations.