O’Reilly Automotive Inc (ORLY)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	5,570,120	4,371,650	3,826,980	4,123,220	3,890,530
Total assets	US$ in thousands	13,873,000	12,628,000	11,718,700	11,596,600	10,717,200
Debt-to-assets ratio		0.40	0.35	0.33	0.36	0.36

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,570,120K ÷ $13,873,000K
= 0.40

The debt-to-assets ratio of O`Reilly Automotive, Inc. has shown some fluctuations over the past five years. In 2023, the ratio increased to 0.40 from 0.35 in 2022, indicating that the company relied more on debt to finance its assets compared to the previous year. This increase in the ratio suggests a higher proportion of the company's assets were financed by debt in 2023.

However, when comparing the 2023 ratio to 2021 and 2020, it is still higher, indicating a potential shift towards a more leveraged capital structure. In 2022 and 2019, the ratio was at 0.35 and 0.36, respectively, showing relatively stable levels of debt utilization in those years.

Overall, a debt-to-assets ratio of 0.40 in 2023 indicates that O`Reilly Automotive, Inc. financed 40% of its assets through debt. This ratio can provide insights into the company's risk exposure and financial stability, as a higher ratio may indicate higher financial risk and dependency on debt financing. It would be important for stakeholders to monitor this ratio over time to assess the company's capital structure decisions and their impact on financial health.