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O'Reilly Automotive Interest Coverage

: 21.13 (As of Jun. 2021)
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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 Jun. 2021 was $796 Mil. O'Reilly Automotive's Interest Expense for the three months ended in Jun. 2021 was $-38 Mil. O'Reilly Automotive's interest coverage for the quarter that ended in Jun. 2021 was 21.13. 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:

NAS:ORLY' s Interest Coverage Range Over the Past 10 Years
Min: 13.72   Med: 23.17   Max: 30.68
Current: 17.7

13.72
30.68

NAS:ORLY's Interest Coverage is ranked lower than
99.99% of the 151 Companies
in the Retail - Cyclical industry.

( Industry Median: 15.27 vs. NAS:ORLY: 17.70 )

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


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.

* Premium members only.

O'Reilly Automotive Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.96 18.89 14.86 13.72 15.02

O'Reilly Automotive Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.65 17.40 13.93 18.43 21.13

Competitive Comparison

For the Specialty Retail 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 Interest Coverage Distribution

For the Retail - Cyclical 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.



O'Reilly Automotive Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

O'Reilly Automotive's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, O'Reilly Automotive's Interest Expense was $-161 Mil. Its Operating Income was $2,419 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,842 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*2419.336/-161.126
=15.02

O'Reilly Automotive's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the three months ended in Jun. 2021, O'Reilly Automotive's Interest Expense was $-38 Mil. Its Operating Income was $796 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,572 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*795.583/-37.657
=21.13

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


O'Reilly Automotive  (NAS:ORLY) Interest Coverage Explanation

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 Automotive Business Description

O'Reilly Automotive logo
Industry
Consumer Cyclical » Retail - Cyclical NAICS : 441310 SIC : 5531
Address
233 South Patterson Avenue, Springfield, MO, USA, 65802
O'Reilly is one of the largest sellers of aftermarket automotive parts, tools, and accessories, serving professional and DIY customers (41% and 59% of 2020 sales, respectively). The company sells branded as well as own-label products, with the latter category comprising nearly half of sales. O'Reilly had 5,616 stores as of the end of 2020, spread across 47 U.S. states and including 22 stores in Mexico. The firm serves professional and DIY customers through its store network, and also boasts approximately 765 sales personnel targeting commercial buyers.
Executives
Henslee Gregory L director, officer: EV CHAIRMAN OF THE BOARD 233 S PATTERSON SPRINGFIELD MO 65802
Oreilly David E director, officer: CHAIRMAN OF THE BOARD 233 SOUTH PATTERSON SPRINGFIELD MO 65802
Ellis Larry Lee officer: SVP OF DISTRIBUTION 233 SOUTH PATTERSON AVENUE SPRINGFIELD MO 65802
Murphy John Raymond director 233 S PATTERSON AVE SPRINGFIELD MO 65802
Shaw Jeff M officer: COO & CO-PRESIDENT 233 S PATTERSON AVE SPRINGFIELD MO 65802
Venosdel Richard Darin officer: SVP OF INVENTORY MANAGEMENT 233 SOUTH PATTERSON AVENUE SPRINGFIELD MO 65802
Wilbanks Carl David officer: SVP OF MERCHANDISE 233 SOUTH PATTERSON AVE SPRINGFIELD MO 65802
Burchfield Jay D director 233 S PATTERSON AVE SPRINGFIELD MO 65802
Hendrickson Thomas director 16234 SANDSTONE DRIVE MORRISON CO 80465
Weiss Andrea director 23 RAMRAPO COURT WEST GLENROCK NJ 07452
Perlman Dana director C/O 200 MADISON AVENUE NEW YORK NY 10016
Wooten Rosalie Oreilly director 233 SOUTH PATTERSON SPRINGFIELD MO 65802
Sastre Maria director C/O DARDEN RESTAURANTS, INC. 1000 DARDEN CENTER DRIVE ORLANDO FL 32837
Johnson Gregory D officer: CEO & CO-PRESIDENT 233 SOUTH PATTERSON SPRINGFIELD MO 65802
Tarrant Jason Lee officer: SVP OF WESTERN STORE OPS/SALES 233 SOUTH PATTERSON AVENUE SPRINGFIELD MO 65802

O'Reilly Automotive Headlines

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