O’Reilly Automotive Inc (ORLY)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	2,346,580	2,172,650	2,164,680	1,752,300	1,391,040
Total assets	US$ in thousands	13,873,000	12,628,000	11,718,700	11,596,600	10,717,200
ROA		16.91%	17.21%	18.47%	15.11%	12.98%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $2,346,580K ÷ $13,873,000K
= 16.91%

O`Reilly Automotive, Inc.'s return on assets (ROA) has demonstrated a positive trend over the past five years, increasing from 12.98% in 2019 to 16.91% in 2023. This indicates that the company has been effectively generating profits relative to its total assets each year.

The ROA peaked at 18.47% in 2021, reflecting a strong performance in utilizing its assets to generate earnings. Although there was a slight decrease in ROA to 15.11% in 2020, the company managed to bounce back and achieve a higher ROA in the subsequent years.

Overall, the consistent improvement in ROA over the years suggests that O`Reilly Automotive, Inc. has been efficient in utilizing its assets to generate profits and create value for its shareholders. This trend indicates effective asset management and operational performance, which is a positive indicator of the company's financial health and performance.