O’Reilly Automotive Inc (ORLY)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	3,004,750	2,979,466	2,894,648	2,842,814	2,798,655	2,796,632	2,755,312	2,759,348	2,781,914	2,637,619	2,603,496	2,542,572	2,266,405	2,175,789	1,991,276	1,755,837	1,790,329	1,774,173	1,727,931	1,712,833
Revenue (ttm)	US$ in thousands	15,673,280	15,485,750	15,089,740	14,703,610	14,301,060	13,948,060	13,635,980	13,430,250	13,222,560	12,759,840	12,481,270	12,103,380	11,487,200	11,141,410	10,606,010	10,111,240	10,049,160	9,881,140	9,700,550	9,569,440
Pretax margin		19.17%	19.24%	19.18%	19.33%	19.57%	20.05%	20.21%	20.55%	21.04%	20.67%	20.86%	21.01%	19.73%	19.53%	18.77%	17.37%	17.82%	17.96%	17.81%	17.90%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $3,004,750K ÷ $15,673,280K
= 19.17%

The pretax margin of O`Reilly Automotive, Inc. has been relatively stable over the past eight quarters, ranging from 19.00% to 20.39%. It peaked in Q2 2022 at 20.39% and has since shown a slight decline. This indicates that the company has been effectively managing its operating expenses in relation to its revenue, with a consistent ability to generate profits before taxes. It is important for the company to keep monitoring and maintaining this margin to ensure efficient cost control and sustainable profitability in the future.

Peer comparison

Dec 31, 2023

Company name

Symbol

Pretax margin

O’Reilly Automotive Inc

ORLY

19.17%

Advance Auto Parts Inc