O’Reilly Automotive Inc (ORLY)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 3,004,750 | 2,798,660 | 2,781,910 | 2,266,400 | 1,790,330 |
| Revenue | US$ in thousands | 15,613,100 | 14,256,600 | 13,182,300 | 11,440,400 | 10,003,700 |
| Pretax margin | 19.25% | 19.63% | 21.10% | 19.81% | 17.90% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $3,004,750K ÷ $15,613,100K
= 19.25%
The pretax margin of O'Reilly Automotive, Inc. has shown a slight decline from 20.87% in 2021 to 19.00% in 2023. Despite this decrease, the company has generally maintained a healthy level of profitability, with pretax margins consistently above 17% over the past five years. This indicates that O'Reilly Automotive has managed to effectively control its operating expenses relative to its total revenue, resulting in a solid performance in terms of generating pre-tax profits. Continued monitoring of this metric will be important to assess the company's ability to sustain its profitability levels in the future.
Peer comparison
Dec 31, 2023