O’Reilly Automotive Inc (ORLY)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | 0.00 |
| Debt-to-equity ratio | — | — | — | — | 0.00 |
| Financial leverage ratio | — | — | — | — | 82.68 |
Based on the provided data, O'Reilly Automotive Inc has demonstrated excellent solvency ratios.
1. Debt-to-assets ratio: The debt-to-assets ratio measures the proportion of a company's assets financed with debt. O'Reilly Automotive has consistently maintained a debt-to-assets ratio of 0.00 across all the reported years. This indicates that the company has not taken on any debt to finance its assets, which is a positive sign for investors and creditors.
2. Debt-to-capital ratio: The debt-to-capital ratio shows the proportion of a company's capital that comes from debt. In this case, there is missing data for all the years reported. However, based on the available information, it suggests that O'Reilly Automotive may not have any debt in its capital structure, as the ratio is shown as "—" across the years.
3. Debt-to-equity ratio: The debt-to-equity ratio compares a company's debt to its equity, reflecting the extent to which the company is leveraged. Similar to the debt-to-capital ratio, there is missing data for all the years provided. Nonetheless, the absence of data implies that O'Reilly Automotive may have an insignificant amount of debt in relation to its equity.
4. Financial leverage ratio: The financial leverage ratio indicates the degree to which a company uses debt in its capital structure. The only year with reported data shows a financial leverage ratio of 82.68 for December 31, 2020. This indicates that, at the end of 2020, O'Reilly Automotive had a relatively higher reliance on debt compared to equity in its financing activities.
In summary, O'Reilly Automotive Inc appears to have a strong financial position with minimal or no debt on its balance sheet, which signals financial stability and strength in its solvency position.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 15.80 | 18.73 | 20.15 | 15.02 |
The interest coverage ratio for O’Reilly Automotive Inc has shown a generally positive trend over the years, starting at 15.02 in December 31, 2020, reaching a peak of 20.15 in December 31, 2021, and maintaining a solid level above 15 in subsequent years. However, it is noted that in December 31, 2024, the interest coverage ratio dropped to 0.00, indicating potentially concerning levels of financial risk or an inability to cover interest costs with operating earnings. This erratic drop requires further investigation to understand the underlying reasons and implications for O'Reilly Automotive's financial health and stability.