Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
O’Reilly Automotive Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | O’Reilly Automotive Inc. debt to capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | O’Reilly Automotive Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | O’Reilly Automotive Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | O’Reilly Automotive Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | O’Reilly Automotive Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | O’Reilly Automotive Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity
O’Reilly Automotive Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Long-term debt | 3,826,978) | 4,123,217) | 3,890,527) | 3,417,122) | 2,978,390) | |
| Total debt | 3,826,978) | 4,123,217) | 3,890,527) | 3,417,122) | 2,978,390) | |
| Shareholders’ equity (deficit) | (66,423) | 140,258) | 397,340) | 353,667) | 653,046) | |
| Solvency Ratio | ||||||
| Debt to equity1 | — | 29.40 | 9.79 | 9.66 | 4.56 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Amazon.com Inc. | 0.54 | 0.66 | 0.83 | — | — | |
| Home Depot Inc. | 11.29 | — | — | — | — | |
| Lowe’s Cos. Inc. | 15.16 | 9.79 | 4.45 | — | — | |
| TJX Cos. Inc. | 1.04 | 0.38 | 0.44 | — | — | |
| Debt to Equity, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 0.93 | 1.17 | 1.44 | — | — | |
| Debt to Equity, Industry | ||||||
| Consumer Discretionary | 1.52 | 2.37 | 2.78 | — | — | |
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).
1 2021 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 3,826,978 ÷ -66,423 = —
2 Click competitor name to see calculations.
Debt to Equity (including Operating Lease Liability)
O’Reilly Automotive Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Long-term debt | 3,826,978) | 4,123,217) | 3,890,527) | 3,417,122) | 2,978,390) | |
| Total debt | 3,826,978) | 4,123,217) | 3,890,527) | 3,417,122) | 2,978,390) | |
| Current portion of operating lease liabilities | 337,832) | 322,778) | 316,061) | —) | —) | |
| Operating lease liabilities, less current portion | 1,701,757) | 1,718,691) | 1,655,297) | —) | —) | |
| Total debt (including operating lease liability) | 5,866,567) | 6,164,686) | 5,861,885) | 3,417,122) | 2,978,390) | |
| Shareholders’ equity (deficit) | (66,423) | 140,258) | 397,340) | 353,667) | 653,046) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | — | 43.95 | 14.75 | 9.66 | 4.56 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Amazon.com Inc. | 0.96 | 1.08 | 1.25 | — | — | |
| Home Depot Inc. | 13.16 | — | — | — | — | |
| Lowe’s Cos. Inc. | 18.24 | 12.04 | 4.45 | — | — | |
| TJX Cos. Inc. | 2.66 | 1.93 | 0.44 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Consumer Discretionary Distribution & Retail | 1.46 | 1.76 | 1.82 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 1.90 | 2.84 | 3.08 | — | — | |
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).
1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity (deficit)
= 5,866,567 ÷ -66,423 = —
2 Click competitor name to see calculations.
Debt to Capital
O’Reilly Automotive Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Long-term debt | 3,826,978) | 4,123,217) | 3,890,527) | 3,417,122) | 2,978,390) | |
| Total debt | 3,826,978) | 4,123,217) | 3,890,527) | 3,417,122) | 2,978,390) | |
| Shareholders’ equity (deficit) | (66,423) | 140,258) | 397,340) | 353,667) | 653,046) | |
| Total capital | 3,760,555) | 4,263,475) | 4,287,867) | 3,770,789) | 3,631,436) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 1.02 | 0.97 | 0.91 | 0.91 | 0.82 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Amazon.com Inc. | 0.35 | 0.40 | 0.45 | — | — | |
| Home Depot Inc. | 0.92 | 1.11 | 1.07 | — | — | |
| Lowe’s Cos. Inc. | 0.94 | 0.91 | 0.82 | — | — | |
| TJX Cos. Inc. | 0.51 | 0.27 | 0.31 | — | — | |
| Debt to Capital, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 0.48 | 0.54 | 0.59 | — | — | |
| Debt to Capital, Industry | ||||||
| Consumer Discretionary | 0.60 | 0.70 | 0.74 | — | — | |
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).
1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 3,826,978 ÷ 3,760,555 = 1.02
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | O’Reilly Automotive Inc. debt to capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital (including Operating Lease Liability)
O’Reilly Automotive Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Long-term debt | 3,826,978) | 4,123,217) | 3,890,527) | 3,417,122) | 2,978,390) | |
| Total debt | 3,826,978) | 4,123,217) | 3,890,527) | 3,417,122) | 2,978,390) | |
| Current portion of operating lease liabilities | 337,832) | 322,778) | 316,061) | —) | —) | |
| Operating lease liabilities, less current portion | 1,701,757) | 1,718,691) | 1,655,297) | —) | —) | |
| Total debt (including operating lease liability) | 5,866,567) | 6,164,686) | 5,861,885) | 3,417,122) | 2,978,390) | |
| Shareholders’ equity (deficit) | (66,423) | 140,258) | 397,340) | 353,667) | 653,046) | |
| Total capital (including operating lease liability) | 5,800,144) | 6,304,944) | 6,259,225) | 3,770,789) | 3,631,436) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 1.01 | 0.98 | 0.94 | 0.91 | 0.82 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Amazon.com Inc. | 0.49 | 0.52 | 0.56 | — | — | |
| Home Depot Inc. | 0.93 | 1.09 | 1.07 | — | — | |
| Lowe’s Cos. Inc. | 0.95 | 0.92 | 0.82 | — | — | |
| TJX Cos. Inc. | 0.73 | 0.66 | 0.31 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Consumer Discretionary Distribution & Retail | 0.59 | 0.64 | 0.65 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.65 | 0.74 | 0.76 | — | — | |
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).
1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 5,866,567 ÷ 5,800,144 = 1.01
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | O’Reilly Automotive Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets
O’Reilly Automotive Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Long-term debt | 3,826,978) | 4,123,217) | 3,890,527) | 3,417,122) | 2,978,390) | |
| Total debt | 3,826,978) | 4,123,217) | 3,890,527) | 3,417,122) | 2,978,390) | |
| Total assets | 11,718,707) | 11,596,642) | 10,717,160) | 7,980,789) | 7,571,885) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.33 | 0.36 | 0.36 | 0.43 | 0.39 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Amazon.com Inc. | 0.18 | 0.19 | 0.23 | — | — | |
| Home Depot Inc. | 0.53 | 0.61 | 0.66 | — | — | |
| Lowe’s Cos. Inc. | 0.47 | 0.49 | 0.47 | — | — | |
| TJX Cos. Inc. | 0.20 | 0.09 | 0.16 | — | — | |
| Debt to Assets, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 0.24 | 0.26 | 0.31 | — | — | |
| Debt to Assets, Industry | ||||||
| Consumer Discretionary | 0.36 | 0.41 | 0.45 | — | — | |
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).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 3,826,978 ÷ 11,718,707 = 0.33
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | O’Reilly Automotive Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets (including Operating Lease Liability)
O’Reilly Automotive Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Long-term debt | 3,826,978) | 4,123,217) | 3,890,527) | 3,417,122) | 2,978,390) | |
| Total debt | 3,826,978) | 4,123,217) | 3,890,527) | 3,417,122) | 2,978,390) | |
| Current portion of operating lease liabilities | 337,832) | 322,778) | 316,061) | —) | —) | |
| Operating lease liabilities, less current portion | 1,701,757) | 1,718,691) | 1,655,297) | —) | —) | |
| Total debt (including operating lease liability) | 5,866,567) | 6,164,686) | 5,861,885) | 3,417,122) | 2,978,390) | |
| Total assets | 11,718,707) | 11,596,642) | 10,717,160) | 7,980,789) | 7,571,885) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.50 | 0.53 | 0.55 | 0.43 | 0.39 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Amazon.com Inc. | 0.31 | 0.31 | 0.34 | — | — | |
| Home Depot Inc. | 0.62 | 0.73 | 0.66 | — | — | |
| Lowe’s Cos. Inc. | 0.56 | 0.60 | 0.47 | — | — | |
| TJX Cos. Inc. | 0.50 | 0.47 | 0.16 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Consumer Discretionary Distribution & Retail | 0.38 | 0.40 | 0.39 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.45 | 0.50 | 0.50 | — | — | |
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).
1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 5,866,567 ÷ 11,718,707 = 0.50
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | O’Reilly Automotive Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021. |
Financial Leverage
O’Reilly Automotive Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 11,718,707) | 11,596,642) | 10,717,160) | 7,980,789) | 7,571,885) | |
| Shareholders’ equity (deficit) | (66,423) | 140,258) | 397,340) | 353,667) | 653,046) | |
| Solvency Ratio | ||||||
| Financial leverage1 | — | 82.68 | 26.97 | 22.57 | 11.59 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Amazon.com Inc. | 3.04 | 3.44 | 3.63 | — | — | |
| Home Depot Inc. | 21.39 | — | — | — | — | |
| Lowe’s Cos. Inc. | 32.52 | 20.02 | 9.47 | — | — | |
| TJX Cos. Inc. | 5.28 | 4.06 | 2.84 | — | — | |
| Financial Leverage, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 3.82 | 4.44 | 4.62 | — | — | |
| Financial Leverage, Industry | ||||||
| Consumer Discretionary | 4.26 | 5.72 | 6.22 | — | — | |
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).
1 2021 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 11,718,707 ÷ -66,423 = —
2 Click competitor name to see calculations.
Interest Coverage
O’Reilly Automotive Inc., interest coverage calculation, comparison to benchmarks
| 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) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 20.22 | 15.07 | 13.79 | 14.87 | 18.93 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Amazon.com Inc. | 22.09 | 15.69 | 9.73 | — | — | |
| Home Depot Inc. | 13.60 | 13.25 | 14.85 | — | — | |
| Lowe’s Cos. Inc. | 9.88 | 8.83 | 6.21 | — | — | |
| TJX Cos. Inc. | 1.46 | 75.57 | 65.36 | — | — | |
| Interest Coverage, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 15.91 | 14.50 | 11.71 | — | — | |
| Interest Coverage, Industry | ||||||
| Consumer Discretionary | 13.29 | 7.81 | 9.65 | — | — | |
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).
1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,926,682 ÷ 144,768 = 20.22
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | O’Reilly Automotive Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
Fixed Charge Coverage
O’Reilly Automotive Inc., fixed charge coverage calculation, comparison to benchmarks
| 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) | |
| Add: Operating lease cost | 351,296) | 336,156) | 320,480) | 320,868) | 302,772) | |
| Earnings before fixed charges and tax | 3,277,978) | 2,763,687) | 2,250,784) | 2,137,084) | 2,031,925) | |
| Interest expense | 144,768) | 161,126) | 139,975) | 122,129) | 91,349) | |
| Operating lease cost | 351,296) | 336,156) | 320,480) | 320,868) | 302,772) | |
| Fixed charges | 496,064) | 497,282) | 460,455) | 442,997) | 394,121) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 6.61 | 5.56 | 4.89 | 4.82 | 5.16 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Amazon.com Inc. | 5.24 | 4.63 | 3.65 | — | — | |
| Home Depot Inc. | 8.97 | 8.26 | 7.80 | — | — | |
| Lowe’s Cos. Inc. | 6.05 | 5.04 | 3.68 | — | — | |
| TJX Cos. Inc. | 1.04 | 3.43 | 3.39 | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 5.29 | 5.11 | 4.46 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Discretionary | 5.63 | 3.72 | 4.20 | — | — | |
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).
1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,277,978 ÷ 496,064 = 6.61
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | O’Reilly Automotive Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |