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O'Reilly Automotive (O'Reilly Automotive) Beneish M-Score : -2.50 (As of Jul. 19, 2024)


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What is O'Reilly Automotive Beneish M-Score?

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 -2.5 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:

ORLY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.94   Med: -2.71   Max: -2.5
Current: -2.5

During the past 13 years, the highest Beneish M-Score of O'Reilly Automotive was -2.50. The lowest was -2.94. And the median was -2.71.


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 Beneish M-Score Chart

O'Reilly Automotive Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.54 -2.84 -2.76 -2.68 -2.67

O'Reilly Automotive Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial 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 -2.72 -2.79 -2.71 -2.67 -2.50

Competitive Comparison of O'Reilly Automotive's Beneish M-Score

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's Beneish M-Score Distribution in the Retail - Cyclical Industry

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 * 1.1203+0.528 * 0.9949+0.404 * 1.0259+0.892 * 1.0849+0.115 * 0.9599
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0155+4.679 * -0.046553-0.327 * 0.9733
=-2.50

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was $577 Mil.
Revenue was 3976.24 + 3832.015 + 4203.38 + 4068.991 = $16,081 Mil.
Gross Profit was 2034.172 + 1967.429 + 2160.463 + 2086.582 = $8,249 Mil.
Total Current Assets was $5,600 Mil.
Total Assets was $14,213 Mil.
Property, Plant and Equipment(Net PPE) was $7,423 Mil.
Depreciation, Depletion and Amortization(DDA) was $425 Mil.
Selling, General, & Admin. Expense(SGA) was $5,026 Mil.
Total Current Liabilities was $7,888 Mil.
Long-Term Debt & Capital Lease Obligation was $7,189 Mil.
Net Income was 547.238 + 552.504 + 649.827 + 627.365 = $2,377 Mil.
Non Operating Income was 3.401 + 6.963 + -0.486 + 4.186 = $14 Mil.
Cash Flow from Operations was 704.215 + 516.429 + 866.286 + 937.605 = $3,025 Mil.
Total Receivables was $475 Mil.
Revenue was 3707.864 + 3644.493 + 3798.619 + 3670.737 = $14,822 Mil.
Gross Profit was 1890.329 + 1853.954 + 1934.962 + 1884.718 = $7,564 Mil.
Total Current Assets was $5,188 Mil.
Total Assets was $12,973 Mil.
Property, Plant and Equipment(Net PPE) was $6,726 Mil.
Depreciation, Depletion and Amortization(DDA) was $369 Mil.
Selling, General, & Admin. Expense(SGA) was $4,562 Mil.
Total Current Liabilities was $7,356 Mil.
Long-Term Debt & Capital Lease Obligation was $6,782 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables 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)
=(577.088 / 16080.626) / (474.795 / 14821.713)
=0.035887 / 0.032034
=1.1203

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)
=(7563.963 / 14821.713) / (8248.646 / 16080.626)
=0.51033 / 0.512956
=0.9949

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 - (5599.697 + 7422.988) / 14213.054) / (1 - (5187.994 + 6725.702) / 12972.816)
=0.083752 / 0.081641
=1.0259

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
=16080.626 / 14821.713
=1.0849

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))
=(368.757 / (368.757 + 6725.702)) / (424.962 / (424.962 + 7422.988))
=0.051978 / 0.054149
=0.9599

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)
=(5026.434 / 16080.626) / (4562.357 / 14821.713)
=0.312577 / 0.307816
=1.0155

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)
=((7188.832 + 7888.394) / 14213.054) / ((6782.211 + 7356.308) / 12972.816)
=1.060801 / 1.089857
=0.9733

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
=(2376.934 - 14.064 - 3024.535) / 14213.054
=-0.046553

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 -2.50 suggests that the company is unlikely to be a manipulator.


O'Reilly Automotive Beneish M-Score Related Terms

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

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

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