O’Reilly Automotive Inc (ORLY)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	13,873,000	13,551,800	13,276,600	12,972,800	12,628,000	12,238,000	12,067,700	11,760,400	11,718,700	11,789,400	11,949,300	11,850,900	11,596,600	12,504,000	11,728,500	11,108,900	10,717,200	10,372,700	10,201,900	10,061,600
Debt-to-assets ratio		0.40	0.38	0.37	0.38	0.35	0.36	0.39	0.33	0.33	0.32	0.32	0.32	0.36	0.33	0.35	0.40	0.36	0.36	0.37	0.34

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 eight quarters. The ratio ranged from 0.33 to 0.40 during this period. In general, the trend indicates that the company has maintained a conservative approach towards its debt levels relative to its total assets.

The ratio peaked at 0.40 in Q4 2023, which suggests that 40% of the company's total assets were financed by debt during that period. However, it was slightly lower in the preceding quarter, standing at 0.38. This indicates that the company may have either increased its debt or experienced a decrease in its total assets in Q4 2023.

Overall, the variations in the debt-to-assets ratio indicate that O`Reilly Automotive, Inc. has been managing its debt levels relative to its total assets with a degree of prudence. Further analysis, considering other financial metrics and industry benchmarks, would provide a more comprehensive understanding of the company's financial health and leverage position.