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O'Reilly Automotive Beneish M-Score

: -2.75 (As of Today)
View and export this data going back to 1993. Start your Free Trial

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.75 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for O'Reilly Automotive's Beneish M-Score or its related term are showing as below:

NAS:ORLY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.36   Med: -2.59   Max: -0.31
Current: -2.75

-3.36
-0.31

During the past 13 years, the highest Beneish M-Score of O'Reilly Automotive was -0.31. The lowest was -3.36. And the median was -2.59.


O'Reilly Automotive Beneish M-Score Historical Data

The historical data trend for O'Reilly Automotive's Beneish M-Score 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
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.64 -2.65 -2.85 -2.52 -2.88

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
Beneish M-Score 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 -2.87 -2.74 -2.88 -2.82 -2.75

Competitive Comparison

For the Specialty Retail subindustry, O'Reilly Automotive's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, O'Reilly Automotive's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where O'Reilly Automotive's Beneish M-Score falls into.



O'Reilly Automotive Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of O'Reilly Automotive for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9541+0.528 * 1.0082+0.404 * 1.0208+0.892 * 1.175+0.115 * 0.9404
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9307+4.679 * -0.0832-0.327 * 1.0308
=-2.75

* 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.

This Year (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $273 Mil.
Revenue was 3465.601 + 3090.899 + 2828.773 + 3207.638 = $12,593 Mil.
Gross Profit was 1826.378 + 1640.795 + 1472.138 + 1680.468 = $6,620 Mil.
Total Current Assets was $4,738 Mil.
Total Assets was $11,949 Mil.
Property, Plant and Equipment(Net PPE) was $6,192 Mil.
Depreciation, Depletion and Amortization(DDA) was $322 Mil.
Selling, General, & Admin. Expense(SGA) was $3,874 Mil.
Total Current Liabilities was $5,772 Mil.
Long-Term Debt & Capital Lease Obligation was $5,572 Mil.
Net Income was 585.451 + 501.609 + 392.945 + 527.252 = $2,007 Mil.
Non Operating Income was 2.952 + 1.691 + 3.407 + 2.479 = $11 Mil.
Cash Flow from Operations was 822.16 + 890.672 + 487.474 + 790.051 = $2,990 Mil.
Accounts Receivable was $244 Mil.
Revenue was 3091.595 + 2476.487 + 2482.975 + 2666.528 = $10,718 Mil.
Gross Profit was 1637.18 + 1295.906 + 1324.584 + 1422.53 = $5,680 Mil.
Total Current Assets was $4,784 Mil.
Total Assets was $11,729 Mil.
Property, Plant and Equipment(Net PPE) was $5,965 Mil.
Depreciation, Depletion and Amortization(DDA) was $290 Mil.
Selling, General, & Admin. Expense(SGA) was $3,542 Mil.
Total Current Liabilities was $5,022 Mil.
Long-Term Debt & Capital Lease Obligation was $5,780 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(273.148 / 12592.911) / (243.66 / 10717.585)
=0.02169062 / 0.0227346
=0.9541

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(5680.2 / 10717.585) / (6619.779 / 12592.911)
=0.5299888 / 0.52567504
=1.0082

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (4738.347 + 6192.483) / 11949.333) / (1 - (4784.485 + 5964.753) / 11728.535)
=0.08523513 / 0.08349696
=1.0208

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=12592.911 / 10717.585
=1.175

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(290.473 / (290.473 + 5964.753)) / (321.679 / (321.679 + 6192.483))
=0.04643685 / 0.04938149
=0.9404

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(3873.806 / 12592.911) / (3542.283 / 10717.585)
=0.30761799 / 0.3305113
=0.9307

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((5572.444 + 5771.612) / 11949.333) / ((5779.681 + 5022.136) / 11728.535)
=0.94934638 / 0.92098604
=1.0308

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(2007.257 - 10.529 - 2990.357) / 11949.333
=-0.0832

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

O'Reilly Automotive has a M-score of -2.75 suggests that the company is unlikely to be a manipulator.


O'Reilly Automotive Beneish M-Score Related Terms

Thank you for viewing the detailed overview of O'Reilly Automotive's Beneish M-Score 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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