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O'Reilly Automotive (NAS:ORLY) Financial Strength

: 5 (As of Dec. 2023)
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O'Reilly Automotive has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

O'Reilly Automotive's Interest Coverage for the quarter that ended in Dec. 2023 was 12.80. O'Reilly Automotive's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.51. As of today, O'Reilly Automotive's Altman Z-Score is 3.80.


Competitive Comparison

For the Specialty Retail subindustry, O'Reilly Automotive's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where O'Reilly Automotive's Financial Strength falls into.



O'Reilly Automotive Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

O'Reilly Automotive's Interest Expense for the months ended in Dec. 2023 was $-56 Mil. Its Operating Income for the months ended in Dec. 2023 was $719 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $7,451 Mil.

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

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*718.736/-56.148
=12.80

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

O'Reilly Automotive's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(389.536 + 7451.469) / 15328.06
=0.51

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

O'Reilly Automotive has a Z-score of 3.80, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.8 is strong.

* 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.


O'Reilly Automotive  (NAS:ORLY) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

O'Reilly Automotive has the Financial Strength Rank of 5.


O'Reilly Automotive Financial Strength Related Terms

Thank you for viewing the detailed overview of O'Reilly Automotive's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


O'Reilly Automotive (NAS:ORLY) 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