O’Reilly Automotive Inc (ORLY)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,186,380 | 2,954,490 | 2,917,170 | 2,419,340 | 1,920,730 |
| Long-term debt | US$ in thousands | 5,570,120 | 4,371,650 | 3,826,980 | 4,123,220 | 3,890,530 |
| Total stockholders’ equity | US$ in thousands | -1,739,280 | -1,060,750 | -66,423 | 140,258 | 397,340 |
| Return on total capital | 83.18% | 89.24% | 77.57% | 56.75% | 44.79% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,186,380K ÷ ($5,570,120K + $-1,739,280K)
= 83.18%
O`Reilly Automotive, Inc.'s return on total capital has demonstrated a positive trend over the past five years, increasing from 44.79% in 2019 to 83.18% in 2023. This indicates that the company has been effectively utilizing its total capital to generate profits. The significant improvement in the return on total capital suggests that O`Reilly Automotive, Inc. has been efficiently deploying its resources to generate higher returns for its investors. The consistent increase in this ratio reflects the company's ability to generate more profits relative to the total capital employed in its operations. This trend may indicate efficient management of assets and effective operational performance, which can be viewed positively by investors and stakeholders.
Peer comparison
Dec 31, 2023