O’Reilly Automotive Inc (ORLY)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 3,045,060 | 3,004,750 | 2,798,660 | 2,781,910 | 2,266,400 |
| Revenue | US$ in thousands | 16,708,500 | 15,812,200 | 14,409,900 | 13,327,600 | 11,604,500 |
| Pretax margin | 18.22% | 19.00% | 19.42% | 20.87% | 19.53% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $3,045,060K ÷ $16,708,500K
= 18.22%
The pretax margin of O'Reilly Automotive Inc has shown a mixed trend over the past five years. Starting at 19.53% in December 31, 2020, the pretax margin increased to 20.87% by December 31, 2021, indicating improved efficiency in generating profits before taxes. However, in the following years, the pretax margin experienced a slight decline, dropping to 19.42% on December 31, 2022, and further decreasing to 19.00% on December 31, 2023. The most significant decrease was observed by the end of December 31, 2024, reaching 18.22%, possibly indicating challenges in maintaining profitability levels amidst changing market conditions or increased costs.
Overall, fluctuations in the pretax margin suggest that O'Reilly Automotive Inc may need to focus on cost management strategies or revenue enhancement initiatives to sustain or improve its profitability levels in the future. Monitoring factors influencing profitability closely will be crucial for the company to adapt and thrive in a dynamic business environment.
Peer comparison
Dec 31, 2024