O’Reilly Automotive Inc (ORLY)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	-1,739,280	-1,060,750	-66,423	140,258	397,340
ROE		—	—	—	1,249.34%	350.09%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,346,580K ÷ $-1,739,280K
= —

Based on the provided data, O`Reilly Automotive, Inc.'s return on equity (ROE) for the fiscal year ended December 31, 2020, was exceptionally high at 1,249.34%. This signifies that the company generated significant profits relative to its shareholders' equity during that period. The substantial ROE indicates efficient utilization of equity capital, implying strong financial health and effectiveness in generating earnings from shareholders' investments.

Comparing this to the ROE of 350.09% in 2019, there was a remarkable increase in profitability within just one year. Such a significant jump in ROE suggests that O`Reilly Automotive, Inc. improved its profitability and efficiency in managing assets and liabilities in 2020.

Although the ROE figures for 2021, 2022, and 2023 are not provided in the table, it can be inferred that sustaining or surpassing the exceptionally high ROE of 1,249.34% in 2020 would be challenging for the company. However, consistent ROE figures above 100% usually indicate a profitable and well-managed business, reflecting positively on the company's ability to generate returns for shareholders relative to their equity investments.