O’Reilly Automotive Inc (ORLY)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 1.45 | 1.53 | 1.50 | 1.49 | 1.32 | 1.38 | 1.31 | 1.09 | 1.02 | 1.04 | 0.95 | 1.00 | 0.97 | 0.85 | 0.88 | 0.98 | 0.91 | 0.96 | 0.96 | 0.90 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | 17.57 | — | 29.40 | 5.81 | 7.01 | 41.08 | 9.79 | 22.28 | 26.15 | 9.29 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | 54.89 | — | 82.68 | 17.63 | 19.91 | 102.06 | 26.97 | 62.40 | 70.51 | 27.02 |
The solvency ratios for O`Reilly Automotive, Inc. have shown some fluctuations over the past eight quarters. The debt-to-assets ratio has ranged between 0.35 and 0.40, indicating that on average, around 35% to 40% of the company's total assets are financed by debt. The trend seems to be relatively stable with a slight increase in the most recent quarter.
The debt-to-capital ratio has varied between 1.32 and 1.53, suggesting that the company's capital structure has consisted of approximately 32% to 53% debt financing. The ratio has been on an upward trajectory, reaching its peak in Q3 2023, before slightly decreasing in the most recent quarter. This ratio provides insights into the proportion of a company's capital that is financed through debt.
The debt-to-equity ratio and the financial leverage ratio are not provided in the table, limiting the comprehensive analysis of O`Reilly Automotive, Inc.'s solvency. These ratios are crucial in understanding the extent to which the company relies on debt to finance its operations and investments, as well as the level of financial risk it carries.
Overall, based on the available data, O`Reilly Automotive, Inc. appears to maintain a reasonable level of solvency, with its debt levels relative to assets and capital at manageable levels. However, a more detailed analysis incorporating all relevant solvency ratios would provide a more robust assessment of the company's long-term financial stability and risk management practices.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 15.26 | 16.29 | 16.51 | 17.36 | 18.10 | 18.76 | 19.48 | 19.42 | 19.22 | 17.50 | 16.60 | 15.86 | 14.12 | 13.60 | 12.94 | 12.02 | 12.56 | 13.13 | 13.17 | 13.38 |
O`Reilly Automotive, Inc.'s interest coverage has been consistently high and improving over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt with its operating income.
From Q1 2022 to Q4 2023, the interest coverage ratio has steadily increased from 20.66 to 18.49, indicating that the company's operating income is sufficiently exceeding its interest expenses. This trend suggests that O`Reilly Automotive, Inc. is effectively managing its debt obligations and is in a strong financial position to cover its interest payments.
The high and improving interest coverage ratio reflects the company's ability to generate enough earnings to comfortably meet its interest obligations, indicating financial stability and efficiency in utilizing its resources. Investors and creditors may view this positively as it suggests a lower risk of default and a strong ability to withstand economic challenges.