O'Reilly Automotive (O'Reilly Automotive) Operating Income : $3,186 Mil (TTM As of Dec. 2023)

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What is O'Reilly Automotive Operating Income?

O'Reilly Automotive's Operating Income for the three months ended in Dec. 2023 was $719 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $3,186 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. O'Reilly Automotive's Operating Income for the three months ended in Dec. 2023 was $719 Mil. O'Reilly Automotive's Revenue for the three months ended in Dec. 2023 was $3,832 Mil. Therefore, O'Reilly Automotive's Operating Margin % for the quarter that ended in Dec. 2023 was 18.76%.

Good Sign:

O'Reilly Automotive Inc operating margin is expanding. Margin expansion is usually a good sign.

O'Reilly Automotive's 5-Year average Growth Rate for Operating Margin % was 1.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. O'Reilly Automotive's annualized ROC % for the quarter that ended in Dec. 2023 was 25.23%. O'Reilly Automotive's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 40.60%.

O'Reilly Automotive Operating Income Historical Data

The historical data trend for O'Reilly Automotive's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

O'Reilly Automotive Operating Income Chart

O'Reilly Automotive Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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1,920.73

2,419.34

2,917.17

2,954.49

3,186.38

O'Reilly Automotive Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income	Get a 7-Day Free Trial															682.22	716.65	853.77	897.22	718.74

O'Reilly Automotive Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,186 Mil.

O'Reilly Automotive (NAS:ORLY) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

O'Reilly Automotive's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	2874.944 * ( 1 - 17.72% )	/	( (9185.109	+	9563.714)	/ 2 )
=	2365.5039232	/	9374.4115
=	25.23 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	13551.838	-	6820.099	-	( 82.664	-	max(0, 7831.082	-	5377.712	+	82.664	))
=	9185.109

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	13872.995	-	6412.332	-	( 279.132	-	max(0, 7661.353	-	5558.302	+	279.132	))
=	9563.714

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

O'Reilly Automotive's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	2910.716	/	( ( (7102.061 + max(-2306.819, 0))	+	(7237.534 + max(-2133.09, 0)) )	/	2 )
=	2910.716	/	( ( 7102.061	+	7237.534 )	/	2 )
=	2910.716	/	7169.7975
=	40.60 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(399.654	+	4631.511	+	107.156)	-	(6820.099	+	0	+	625.041)
=	-2306.819

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(375.049	+	4658.367	+	105.311)	-	(6412.332	+	0	+	859.485)
=	-2133.09

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

O'Reilly Automotive's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	718.736	/	3832.015
	=	18.76 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

O'Reilly Automotive Operating Income Related Terms

Thank you for viewing the detailed overview of O'Reilly Automotive's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

O'Reilly Automotive (O'Reilly Automotive) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » O'Reilly Automotive Inc (NAS:ORLY) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

ORLY:Mexico OM6:Germany OM6:Germany ORLY34:Brazil ORLY:Austria

Address

233 South Patterson Avenue, Springfield, MO, USA, 65802

Website

https://www.oreillyauto.com

O'Reilly Automotive is one of the largest sellers of aftermarket automotive parts, tools, and accessories, serving professional and DIY customers (44% and 56% of 2022 sales, respectively). The company sells branded as well as own-label products, with the latter category comprising nearly half of sales. O'Reilly had 5,971 stores as of the end of 2022, spread across 47 U.S. states and including 42 stores in Mexico. The firm serves professional and DIY customers through its stores and also employs approximately 725 sales personnel targeting commercial buyers.

Executives

Christopher Andrew Mancini	officer: SVP OF CENTRAL STORE OPS/SALES	233 SOUTH PATTERSON AVENUE, SPRINGFIELD MO 65802
Dana Perlman	director	C/O 200 MADISON AVENUE, NEW YORK NY 10016
Carl David Wilbanks	officer: SVP OF MERCHANDISE	233 SOUTH PATTERSON AVE, SPRINGFIELD MO 65802
Lawrence P Oreilly	director	233 S PATTERSON AVE, SPRINGFIELD MO 65802
De Wild Tamara F.	officer: SVP OF LEGAL & GENERAL COUNSEL	233 S PATTERSON AVE, SPRINGFIELD MO 65802
Doug D Bragg	officer: SVP OF CENTRAL STORE OPS/SALES	233 SOUTH PATTERSON AVE, SPRINGFIELD MO 65802
Jay D Burchfield	director	233 S PATTERSON AVE, SPRINGFIELD MO 65802
Jonathan Wyatt Andrews	officer: SVP OF HR & TRAINING	233 SOUTH PATTERSON AVENUE, SPRINGFIELD MO 65802
John Raymond Murphy	director	233 S PATTERSON AVE, SPRINGFIELD MO 65802
Thomas Hendrickson	director	16234 SANDSTONE DRIVE, MORRISON CO 80465
Scott Richard Ross	officer: EVP & CIO	233 SOUTH PATTERSON AVENUE, SPRINGFIELD MO 65802
Gregory D Johnson	officer: SVP of Distribution	233 SOUTH PATTERSON, SPRINGFIELD MO 65802
Gregory L Henslee	officer: Co-President	233 S PATTERSON, SPRINGFIELD MO 65802
Andrea Weiss	director	23 RAMRAPO COURT WEST, GLENROCK NJ 07452
Larry Dean Gray	officer: SVP OF INVENTORY MANAGEMENT	233 SOUTH PATTERSON AVENUE, SPRINGFIELD MO 65802