Stock Analysis on Net
Stock Analysis on Net

O’Reilly Automotive Inc. (NASDAQ:ORLY)

$22.49

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

Common-Size Income Statement
Quarterly Data

Paying user area

Try for free

O’Reilly Automotive Inc. pages available for free this week:

The data is hidden behind: . Unhide it.

Get access

This is a one-time payment. There is no automatic renewal.

We accept:

Visa Mastercard American Express Maestro Discover JCB PayPal Google Pay
Visa Secure Mastercard Identity Check American Express SafeKey

O’Reilly Automotive Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Sales
Cost of goods sold, including warehouse and distribution expenses
Gross profit
Selling, general and administrative expenses
Operating income
Interest expense
Interest income
Other, net
Other income (expense)
Income before income taxes
Provision for income taxes
Net income

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

Gross Profit Margin Trends
Gross profit as a percentage of sales displays a relatively stable pattern with slight fluctuations over the analyzed periods. It peaked around 53.35% in late 2017 and 2019 but has experienced a gradual decrease since 2020, ending near 50.94% by the third quarter of 2022. This subtle decline suggests a marginally increasing cost base relative to sales over time.
Cost of Goods Sold (COGS) and Distribution Expenses
The cost of goods sold, including warehouse and distribution expenses, mostly follows an inverse trend to gross profit, consistently representing about 47% to 49% of sales. Notably, there is a gradual increase in COGS percentage after 2020, rising closer to 49% by late 2022, indicating upward pressure on direct costs impacting profitability.
Selling, General, and Administrative Expenses (SG&A)
SG&A expenses relative to sales have shown variability, primarily fluctuating between approximately 29% and 35%. A significant dip in SG&A expense ratios occurs between mid-2020 and early 2021, reaching lows near 29%, potentially reflecting cost control measures. However, this is followed by an increase toward previous levels by the end of 2021 and into 2022, indicating occasional fluctuations in overhead costs.
Operating Income
Operating income as a percentage of sales exhibits a generally stable range around 18% to 22%. A notable spike occurred in mid-2020, where operating income rose above 23%, coinciding with reduced SG&A expenses. Subsequent quarters show a decline back to the 20% range, maintaining operational profitability despite cost variations.
Interest Expense and Income
Interest expense relative to sales has gradually increased over the years, nearing 1.14% by late 2022, up from approximately 0.9% in 2017. This suggests growing financing costs or increased leverage. Interest income remains minimal throughout, fluctuating near 0.01%-0.04%, and has negligible impact on overall profitability.
Other Income and Expense Items
The net effect of other items shows variability, with occasional negative impacts peaking at -1.77% in early 2020 but mostly hovering around -1%. This consistency implies relatively stable non-operating income and expenses, with no substantial unusual items distorting earnings.
Income Before Taxes
Income before income taxes maintains a consistent level between 15% and 22% of sales. Peaks coincide with periods of reduced SG&A expenses and stable gross margins, while troughs align with rising COGS and interest expenses. The pattern reflects the combined influence of operational efficiency and financing costs on profitability before taxation.
Provision for Income Taxes
The effective tax provision as a percentage of sales generally lies between 3% and 6%, with occasional decreases below 4%. There is noticeable variability, especially during 2020 and 2021, which could suggest changes in tax strategies, tax rates, or the timing of tax expenses.
Net Income
Net income margin presents a strong and steady profile, mostly ranging between 12% and 17%. There is a visible increase during 2020, peaking above 17%, likely aided by cost reductions and operational efficiencies. Although margins slightly declined afterward, they remain robust, supporting overall profitability resilience despite cost pressures.
Summary
The data illustrates a company managing relatively stable gross margins with increasing cost pressures from COGS and interest expenses. SG&A fluctuations, especially a significant reduction in 2020, contributed to higher operating and net margins during that period. Despite these pressures, operating and net income margins remain healthy, supported by effective cost management and steady sales performance. The tax provision exhibits some volatility but does not significantly distort net profitability trends.