O’Reilly Automotive Inc (ORLY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 51.20% | 51.21% | 51.16% | 51.30% | 51.26% | 51.15% | 51.02% | 51.03% | 51.23% | 51.66% | 52.01% | 52.37% | 52.67% | 52.53% | 52.57% | 52.63% | 52.44% | 52.74% | 53.00% | 52.97% |
| Operating profit margin | 19.46% | 19.65% | 19.85% | 20.04% | 20.15% | 20.16% | 20.08% | 20.25% | 20.50% | 20.97% | 21.10% | 21.40% | 21.89% | 21.57% | 21.81% | 21.99% | 20.85% | 20.66% | 19.95% | 18.59% |
| Pretax margin | 18.22% | 18.43% | 18.61% | 18.83% | 19.00% | 19.07% | 19.02% | 19.18% | 19.42% | 19.90% | 20.06% | 20.39% | 20.87% | 20.50% | 20.67% | 20.81% | 19.53% | 19.33% | 18.58% | 17.19% |
| Net profit margin | 14.28% | 14.52% | 14.57% | 14.78% | 14.84% | 14.87% | 14.84% | 14.89% | 15.08% | 15.39% | 15.55% | 15.85% | 16.24% | 15.85% | 15.94% | 15.99% | 15.10% | 14.96% | 14.45% | 13.41% |
O’Reilly Automotive Inc’s profitability ratios have shown some fluctuations over the past few years.
- Gross profit margin has slowly declined from 52.97% in March 2020 to 51.20% by December 2024. This indicates a slight decrease in the company's efficiency in generating sales after accounting for the cost of goods sold.
- Operating profit margin followed a similar trend, starting at 18.59% in March 2020 and decreasing to 19.46% by December 2024. This suggests a decline in operating efficiency and profitability over the period.
- Pretax margin also exhibited a downward trend, starting at 17.19% in March 2020 and decreasing to 18.22% by December 2024. This downward trend indicates that the company's profitability before taxes has been decreasing over time.
- Net profit margin, reflecting the company's bottom line profitability, decreased from 13.41% in March 2020 to 14.28% by December 2024. This indicates a decline in the company's ability to convert revenue into profit.
Overall, the profitability ratios of O’Reilly Automotive Inc show a general decline over the period, indicating potential challenges in maintaining profitability levels amidst changing market conditions or operational factors. Further analysis and investigation into the reasons behind these trends would be necessary to address any underlying issues affecting the company's profitability.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.83% | 22.17% | 22.45% | 22.67% | 21.82% | 23.24% | 23.02% | 23.14% | 23.40% | 24.09% | 24.02% | 24.62% | 24.89% | 23.54% | 22.98% | 22.67% | 20.86% | 18.61% | 18.23% | 17.10% |
| Return on assets (ROA) | 16.02% | 16.38% | 16.48% | 16.72% | 16.07% | 17.14% | 17.01% | 17.02% | 17.21% | 17.67% | 17.70% | 18.24% | 18.47% | 17.29% | 16.80% | 16.48% | 15.11% | 13.47% | 13.20% | 12.34% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1,267.23% | — | 1,730.76% | 329.07% | 363.87% | 1,746.45% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 922.05% | — | 1,249.34% | 237.48% | 262.83% | 1,258.98% |
The profitability ratios of O’Reilly Automotive Inc show a positive trend over the period under review.
The Operating Return on Assets (Operating ROA) increased steadily from 17.10% as of March 31, 2020, to a peak of 24.89% by December 31, 2021, before showing a slight decline to 21.83% by December 31, 2024. This ratio indicates the efficiency of the company in generating operating income relative to its total assets. The consistent improvement in this ratio suggests that the company has been effectively utilizing its assets to generate operating profits.
The Return on Assets (ROA) also exhibited a similar pattern, starting at 12.34% on March 31, 2020, and reaching a peak of 18.47% by December 31, 2021, before declining to 16.02% by December 31, 2024. This ratio measures the company's ability to generate earnings relative to its total assets. The increasing trend in ROA indicates that O’Reilly Automotive Inc has been successful in efficiently utilizing its assets to generate profits.
The Return on Equity (ROE) and Return on Total Capital also showed significant improvements initially, but the data provided lacks values for the latter periods (from March 31, 2021, onwards). However, the available data suggests high returns on both equity and total capital during the initial periods under review.
Overall, the upward trends in the profitability ratios reflect positively on O’Reilly Automotive Inc's financial performance, indicating efficient management of assets and capital to generate returns for its shareholders.
See also:
O’Reilly Automotive Inc Profitability Ratios (Quarterly Data)