O’Reilly Automotive Inc (ORLY)

Quick 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	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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	515,492	556,381	513,380	474,795	470,974	473,706	453,784	404,374	386,374	393,765	386,322	380,611	331,194	333,533	330,173	304,613	295,307	300,140	339,977	317,132
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
Quick ratio		0.10	0.08	0.07	0.07	0.08	0.08	0.11	0.10	0.13	0.14	0.18	0.17	0.15	0.35	0.24	0.13	0.08	0.07	0.09	0.09

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 shown some fluctuations over the past eight quarters. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.

In the latest quarter, Q4 2023, the quick ratio was 0.12, which improved slightly compared to the previous quarter. This indicates that O`Reilly Automotive, Inc. had $0.12 of liquid assets available to cover each $1 of current liabilities. However, the quick ratio has been consistently below 1 for the past eight quarters, suggesting a potential liquidity concern.

Although the quick ratio improved in Q4 2023, the company's liquidity position may still be considered weak overall based on the historical trend. It is essential for O`Reilly Automotive, Inc. to closely monitor its liquidity management to ensure it can meet its short-term obligations effectively.