Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
O’Reilly Automotive Inc., consolidated balance sheet: assets
US$ in thousands
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).
The financial data exhibits several notable trends in the company's asset composition and overall financial position over the analyzed five-year period.
- Liquidity and Current Assets
- Cash and cash equivalents showed significant fluctuation, decreasing from $46.3 million in 2017 to $31.3 million in 2018, then recovering to $40.4 million in 2019, followed by a dramatic increase to $465.6 million in 2020 and a decline to $362.1 million in 2021. This pattern suggests a possible one-time event or strategic cash buildup in 2020, followed by partial utilization in the subsequent year. Accounts receivable, net of doubtful accounts, trended upward overall, from $216.3 million in 2017 to $272.6 million in 2021, indicating growing sales or extended credit terms. Amounts receivable from suppliers steadily increased from $76.2 million to $113.1 million, suggesting longer payment cycles or increased vendor credit. Inventory levels consistently rose from $3.01 billion in 2017 to $3.69 billion in 2021, reflecting growth in stock holdings possibly aligned with expanded operations or demand expectations. Other current assets fluctuated moderately but increased notably from $44.8 million in 2019 to $70.1 million in 2021. Overall, current assets expanded materially from $3.40 billion to $4.50 billion, supporting operational growth and liquidity.
- Fixed and Noncurrent Assets
- Net property and equipment steadily increased from $3.34 billion in 2017 to $4.21 billion in 2021, indicating ongoing capital investment or acquisitions of physical assets. Operating lease right-of-use assets first appear in 2019 amounting to $1.93 billion, remaining relatively stable around $1.98 billion through 2021, reflecting adoption of new lease accounting standards and the presence of significant leased assets. Goodwill rose moderately from $789.1 million in 2017 to peak at $936.8 million in 2019, then slightly declined to $879.3 million by 2021, signaling acquisitions with some impairment or divestitures. Other noncurrent assets experienced a substantial increase from $41.3 million to $139.1 million, possibly representing deferred charges, long-term receivables, or investments. Consequently, total noncurrent assets grew markedly from $4.17 billion in 2017 to $7.21 billion in 2021, driven primarily by lease assets and property additions.
- Total Asset Base
- Total assets expanded impressively over the period, rising from $7.57 billion in 2017 to $11.72 billion in 2021. This growth was particularly pronounced between 2018 and 2019, coinciding with the recognition of operating lease assets, and continued steadily thereafter. The rising asset base reflects sustained investment in both current and long-term assets, supporting the company's operational scale and strategic initiatives.
In summary, the data indicate a period characterized by significant asset growth, driven by increases in inventory, receivables, capital assets, and adoption of new lease accounting. The patterns suggest an expansionary phase with increasing operational scale and complexity, balanced by fluctuations in cash levels that may correspond to strategic liquidity management or transactional activities.