O’Reilly Automotive Inc (ORLY)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 51.91% | 51.78% | 53.25% | 53.19% | 53.93% |
| Operating profit margin | 20.41% | 20.72% | 22.13% | 21.15% | 19.20% |
| Pretax margin | 19.25% | 19.63% | 21.10% | 19.81% | 17.90% |
| Net profit margin | 15.03% | 15.24% | 16.42% | 15.32% | 13.91% |
O`Reilly Automotive, Inc.'s profitability ratios have shown some fluctuations over the years.
The gross profit margin has been relatively stable, hovering around the low 50% range, indicating the company is effectively managing its cost of goods sold and generating a consistent level of profit on its sales.
The operating profit margin has also shown stability, staying above 20% for the most part, suggesting strong operational efficiency in managing operating expenses relative to revenue.
The pretax margin has shown a slight decrease in recent years but remains healthy, indicating that the company is able to generate profits before tax at a consistent rate relative to its total revenue.
The net profit margin has shown a similar trend to the pretax margin, with a slight decline in recent years but remaining at a respectable level, indicating the company's ability to generate net income relative to its total revenue.
Overall, O`Reilly Automotive, Inc. has demonstrated solid profitability ratios over the years, despite some minor fluctuations, which reflects the company's efficient management of costs and operations to generate consistent profits.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 22.97% | 23.40% | 24.89% | 20.86% | 17.92% |
| Return on assets (ROA) | 16.91% | 17.21% | 18.47% | 15.11% | 12.98% |
| Return on total capital | 83.18% | 89.24% | 77.57% | 56.75% | 44.79% |
| Return on equity (ROE) | — | — | — | 1,249.34% | 350.09% |
O`Reilly Automotive, Inc. has shown a consistent improvement in its profitability over the years, as reflected in its profitability ratios.
The operating return on assets (Operating ROA) decreased slightly from 23.40% in 2022 to 22.97% in 2023. This ratio measures the company's operating income generated per dollar of assets, indicating that O`Reilly Automotive, Inc. was able to generate $0.23 of operating income for every dollar of assets in 2023.
The return on assets (ROA) also showed a slight decline from 17.21% in 2022 to 16.91% in 2023. This ratio reflects the company's overall ability to generate profit from its assets, with O`Reilly Automotive, Inc. generating $0.17 of profit for every dollar of assets in 2023.
The return on total capital has been fluctuating over the years but has generally shown an increasing trend, reaching 83.18% in 2023. This ratio indicates the efficiency of the company in generating returns from both equity and debt capital employed in the business.
The return on equity (ROE) was not available for 2021 and earlier years but exhibited a remarkable improvement from 44.79% in 2019 to 1,249.34% in 2020, showcasing a significant increase in the company's net income generated for each dollar of shareholder equity.
Overall, O`Reilly Automotive, Inc. has been effectively managing its assets and capital to enhance profitability, as evidenced by the positive trend in its profitability ratios over the years.