O'Reilly Automotive (STU:OM6) Interest Coverage

: 12.80 (As of Dec. 2023)

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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 Dec. 2023 was €659 Mil. O'Reilly Automotive's Interest Expense for the three months ended in Dec. 2023 was €-51 Mil. O'Reilly Automotive's interest coverage for the quarter that ended in Dec. 2023 was 12.80. 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:

STU:OM6' s Interest Coverage Range Over the Past 10 Years
Min: 13.72 Med: 18.81 Max: 26.5
Current: 15.8

STU:OM6's Interest Coverage is ranked better than
66.05% of 754 companies
in the Retail - Cyclical industry
Industry Median: 7.755 vs STU:OM6: 15.80

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.

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.

* Premium members only.

O'Reilly Automotive Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

13.72

15.02

20.15

18.73

15.80

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
Interest Coverage																16.12	16.08	17.22	17.47	12.80

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 ⁽¹⁾.

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. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, O'Reilly Automotive's Interest Expense was €-185 Mil. Its Operating Income was €2,922 Mil. And its Long-Term Debt & Capital Lease Obligation was €6,833 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2921.907	/	-184.93
	=	15.80

O'Reilly Automotive's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, O'Reilly Automotive's Interest Expense was €-51 Mil. Its Operating Income was €659 Mil. And its Long-Term Debt & Capital Lease Obligation was €6,833 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	659.081	/	-51.488
	=	12.80

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

O'Reilly Automotive (STU:OM6) 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 (STU:OM6) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » O'Reilly Automotive Inc (STU:OM6) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ORLY:USA ORLY:Mexico 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.

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