Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. O'Reilly Automotive's
Operating Income
for the
three
months ended in Dec. 2024 was $739 Mil. O'Reilly Automotive's Interest Expense for the
three
months ended in Dec. 2024 was $-55 Mil.
O'Reilly Automotive's interest coverage for the quarter that ended in Dec. 2024 was 13.33.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for O'Reilly Automotive's Interest Coverage or its related term are showing as below:
ORLY'
s Interest Coverage Range Over the Past 10 Years
Min: 13.72 Med: 17.27 Max: 26.5
Current: 14.61
ORLY's Interest Coverage is ranked better than 62.7% of 1043
companies
in the Vehicles & Parts industry
Industry Median: 8.01
vs ORLY: 14.61
O'Reilly Automotive Interest Coverage Historical Data
The historical data trend for O'Reilly Automotive's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Competitive Comparison of O'Reilly Automotive's Interest Coverage
For the Auto Parts subindustry, O'Reilly Automotive's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
O'Reilly Automotive's Interest Coverage Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, O'Reilly Automotive's Interest Coverage distribution charts can be found below:
* The bar in red indicates where O'Reilly Automotive's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
O'Reilly Automotive Interest Coverage Related Terms
Thank you for viewing the detailed overview of O'Reilly Automotive's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
O'Reilly is an aftermarket automotive parts retailer in the United States and Mexico with more than $16 billion in annual sales. The company operates over 6,000 domestic stores and serves both the do-it-yourself (about 50% of sales) and professional (47% of sales) end markets. Despite operating amid a highly fragmented industry, O'Reilly differentiates itself by providing quality service to its customers throughout the entirety of the vehicle diagnosis and purchasing process. Furthermore, the firm boasts an impressive hub-and-spoke distribution network designed to provide its localized store base with ample aftermarket part availability across a variety of vehicle makes and models.
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