O’Reilly Automotive Inc (ORLY)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	13,873,000	12,628,000	11,718,700	11,596,600	10,717,200
Total stockholders’ equity	US$ in thousands	-1,739,280	-1,060,750	-66,423	140,258	397,340
Financial leverage ratio		—	—	—	82.68	26.97

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,873,000K ÷ $-1,739,280K
= —

The financial leverage ratio for O`Reilly Automotive, Inc. was not provided for the years 2023, 2022, and 2021. In 2020, the financial leverage ratio was 82.68, indicating that the company relied more on debt to finance its assets compared to its equity. This high ratio suggests a higher level of financial risk, as the company may have a significant amount of debt relative to its equity.

In 2019, the financial leverage ratio was 26.97, which was significantly lower than in 2020. A lower financial leverage ratio implies that the company used less debt financing and had a stronger equity position to support its assets. This could indicate a lower level of financial risk compared to the following year.

Overall, the trend in the financial leverage ratio from 2019 to 2020 suggests a shift towards higher leverage and potentially increased financial risk for O`Reilly Automotive, Inc. It would be important to analyze the company's debt management strategies and overall financial health to understand the implications of this change in leverage.