Stock Analysis on Net

O’Reilly Automotive Inc. (NASDAQ:ORLY)

This company has been moved to the archive! The financial data has not been updated since November 8, 2022.

Analysis of Debt 

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Total Debt (Carrying Amount)

O’Reilly Automotive Inc., balance sheet: debt

US$ in thousands

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Long-term debt 3,826,978 4,123,217 3,890,527 3,417,122 2,978,390
Total long-term debt (carrying amount) 3,826,978 4,123,217 3,890,527 3,417,122 2,978,390

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Debt item Description The company
Total long-term debt (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. O’Reilly Automotive Inc. total debt increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Total Debt (Fair Value)

Microsoft Excel
Dec 31, 2021
Selected Financial Data (US$ in thousands)
Senior Notes 4,135,629
Unsecured revolving credit facility
Total long-term debt (fair value) 4,135,629
Financial Ratio
Debt, fair value to carrying amount ratio 1.08

Based on: 10-K (reporting date: 2021-12-31).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on long-term debt: 3.62%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
3.85% 300,000 11,535
3.85% 300,000 11,553
3.57% 500,000 17,850
3.62% 750,000 27,143
4.38% 500,000 21,915
3.90% 500,000 19,505
4.21% 500,000 21,025
1.80% 500,000 8,990
Total 3,850,000 139,516
3.62%

Based on: 10-K (reporting date: 2021-12-31).

1 US$ in thousands

2 Weighted-average interest rate = 100 × 139,516 ÷ 3,850,000 = 3.62%


Interest Costs Incurred

O’Reilly Automotive Inc., interest costs incurred

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Interest expense 144,768 161,126 139,975 122,129 91,349
Interest costs capitalized 7,000 10,200 13,000 9,100 8,500
Interest costs incurred 151,768 171,326 152,975 131,229 99,849

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Debt item Description The company
Interest expense Amount of the cost of borrowed funds accounted for as interest expense for debt. O’Reilly Automotive Inc. interest expense increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
Interest costs capitalized Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. O’Reilly Automotive Inc. interest costs capitalized decreased from 2019 to 2020 and from 2020 to 2021.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. O’Reilly Automotive Inc. interest costs incurred increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Adjusted Interest Coverage Ratio

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Net income 2,164,685 1,752,302 1,391,042 1,324,487 1,133,804
Add: Income tax expense 617,229 514,103 399,287 369,600 504,000
Add: Interest expense 144,768 161,126 139,975 122,129 91,349
Earnings before interest and tax (EBIT) 2,926,682 2,427,531 1,930,304 1,816,216 1,729,153
 
Interest costs incurred 151,768 171,326 152,975 131,229 99,849
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 20.22 15.07 13.79 14.87 18.93
Adjusted interest coverage ratio (with capitalized interest)2 19.28 14.17 12.62 13.84 17.32

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 2,926,682 ÷ 144,768 = 20.22

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 2,926,682 ÷ 151,768 = 19.28


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). O’Reilly Automotive Inc. adjusted interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.