O’Reilly Automotive Inc (ORLY)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,186,380 | 2,954,490 | 2,917,170 | 2,419,340 | 1,920,730 |
| Total assets | US$ in thousands | 13,873,000 | 12,628,000 | 11,718,700 | 11,596,600 | 10,717,200 |
| Operating ROA | 22.97% | 23.40% | 24.89% | 20.86% | 17.92% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,186,380K ÷ $13,873,000K
= 22.97%
O`Reilly Automotive, Inc. has achieved a consistently strong operating return on assets (operating ROA) over the past five years. The operating ROA has generally shown an increasing trend, starting at 17.92% in 2019 and reaching a peak of 24.89% in 2021 before slightly decreasing to 22.97% in 2023. This indicates that the company has been effectively utilizing its assets to generate operating profits. The high operating ROA percentages suggest that O`Reilly Automotive, Inc. has been efficient in managing its operations and generating earnings relative to its asset base. This performance trend demonstrates the company's ability to generate operating income from its assets, which is a positive indication of its operational efficiency and profitability.
Peer comparison
Dec 31, 2023