O’Reilly Automotive Inc (ORLY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 51.20% | 51.26% | 51.23% | 52.67% | 52.44% |
| Operating profit margin | 19.46% | 20.15% | 20.50% | 21.89% | 20.85% |
| Pretax margin | 18.22% | 19.00% | 19.42% | 20.87% | 19.53% |
| Net profit margin | 14.28% | 14.84% | 15.08% | 16.24% | 15.10% |
O’Reilly Automotive Inc's gross profit margin has remained relatively stable over the years, ranging from 51.20% to 52.67%. This indicates the company has been efficient in generating profits after accounting for the cost of goods sold.
The operating profit margin, which reflects the company's ability to control operating expenses, has fluctuated slightly, with a range of 19.46% to 21.89%. This suggests O’Reilly Automotive has been effective in managing its operating costs but experienced challenges in maintaining consistency.
The pretax margin, a key profitability metric, has shown a decreasing trend from 19.53% to 18.22%. This may indicate that the company's pre-tax profitability has been impacted by factors such as changes in revenue, expenses, or taxes.
O’Reilly Automotive's net profit margin, a measure of overall profitability, has seen a gradual decline from 15.10% to 14.28%. This can imply that the company's net earnings relative to its total revenue have been decreasing over the years, potentially due to various internal or external factors affecting profitability.
In conclusion, while O’Reilly Automotive Inc has maintained a relatively stable gross profit margin, it has faced challenges in sustaining operating, pre-tax, and net profit margins over the past few years. Further analysis would be needed to understand the specific factors driving these changes in profitability ratios.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.83% | 21.82% | 23.40% | 24.89% | 20.86% |
| Return on assets (ROA) | 16.02% | 16.07% | 17.21% | 18.47% | 15.11% |
| Return on total capital | — | — | — | — | 1,724.92% |
| Return on equity (ROE) | — | — | — | — | 1,249.34% |
Based on the provided data for O’Reilly Automotive Inc, let's analyze the profitability ratios:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA indicates the efficiency of the company in generating operating income from its assets. Over the years, O'Reilly Automotive Inc has recorded consistent growth in Operating ROA, starting from 20.86% in 2020 and reaching 23.40% in 2022 before slightly declining to 21.82% in 2023 and maintaining at 21.83% in 2024. This indicates that the company has been effectively utilizing its assets to generate operating income.
2. Return on Assets (ROA):
- ROA measures the overall profitability of the company in generating profits from its total assets. O'Reilly Automotive Inc has shown a similar trend in ROA as in the Operating ROA, with a continuous upward trend from 15.11% in 2020 to 18.47% in 2021, 17.21% in 2022, and then a slight decline to 16.07% in 2023, maintaining at 16.02% in 2024. This indicates the company's ability to generate profits efficiently from its total assets.
3. Return on Total Capital:
- The data shows that the Return on Total Capital is missing for the years provided, except for 2020, which was recorded at a significant 1,724.92%. The absence of data for subsequent years makes it challenging to assess the company's performance in utilizing its total capital effectively.
4. Return on Equity (ROE):
- ROE indicates how efficiently a company is using its equity to generate profits. The data provided shows a significant Return on Equity of 1,249.34% in 2020 for O'Reilly Automotive Inc. However, data for subsequent years is missing, making it difficult to evaluate the company's performance in generating returns for its equity holders after 2020.
Overall, based on the available data, O'Reilly Automotive Inc has demonstrated strong profitability ratios, especially in terms of Operating ROA and ROA, indicating efficient management of assets to generate income. However, the absence of data for Return on Total Capital and Return on Equity for the later years limits a comprehensive analysis of the company's overall profitability performance.