O’Reilly Automotive Inc (ORLY)
Return on total capital
| 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 interest and tax (EBIT) (ttm) | US$ in thousands | 3,186,376 | 3,149,857 | 3,056,829 | 3,001,606 | 2,954,491 | 2,948,155 | 2,898,560 | 2,895,593 | 2,917,168 | 2,775,559 | 2,745,973 | 2,686,880 | 2,419,336 | 2,326,567 | 2,137,917 | 1,899,501 | 1,920,726 | 1,907,263 | 1,856,048 | 1,837,124 |
| Long-term debt | US$ in thousands | 5,570,120 | 5,102,350 | 4,873,700 | 4,927,680 | 4,371,650 | 4,370,770 | 4,669,830 | 3,827,890 | 3,826,980 | 3,826,070 | 3,825,180 | 3,824,290 | 4,123,220 | 4,122,420 | 4,127,400 | 4,471,250 | 3,890,530 | 3,703,630 | 3,783,740 | 3,460,920 |
| Total stockholders’ equity | US$ in thousands | -1,739,280 | -1,760,470 | -1,627,470 | -1,625,020 | -1,060,750 | -1,205,460 | -1,107,430 | -328,273 | -66,423 | -140,853 | 217,694 | -6,977 | 140,258 | 709,225 | 589,100 | 108,844 | 397,340 | 166,219 | 144,682 | 372,365 |
| Return on total capital | 83.18% | 94.25% | 94.17% | 90.88% | 89.24% | 93.14% | 81.37% | 82.74% | 77.57% | 75.32% | 67.92% | 70.39% | 56.75% | 48.15% | 45.33% | 41.47% | 44.79% | 49.29% | 47.25% | 47.93% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,186,376K ÷ ($5,570,120K + $-1,739,280K)
= 83.18%
The return on total capital for O`Reilly Automotive, Inc. has been consistently strong over the past eight quarters, ranging from 81.37% to 94.25%. This indicates that the company has been effectively utilizing its total capital to generate profits. The highest return was observed in Q3 2023 at 94.25%, showing a peak in efficiency during that period. Overall, O`Reilly Automotive, Inc. demonstrates a robust ability to generate meaningful returns relative to the total capital invested in the business, reflecting efficient operational management and financial performance.
Peer comparison
Dec 31, 2023