Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
O’Reilly Automotive Inc., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | O’Reilly Automotive Inc. inventory turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | O’Reilly Automotive Inc. receivables turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | O’Reilly Automotive Inc. payables turnover ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | O’Reilly Automotive Inc. number of days of inventory outstanding improved from 2019 to 2020 and from 2020 to 2021. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | O’Reilly Automotive Inc. operating cycle improved from 2019 to 2020 and from 2020 to 2021. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | O’Reilly Automotive Inc. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021. |
Inventory Turnover
O’Reilly Automotive Inc., inventory turnover 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) | ||||||
| Cost of goods sold, including warehouse and distribution expenses | 6,307,614) | 5,518,801) | 4,755,294) | 4,496,462) | 4,257,043) | |
| Inventory | 3,686,383) | 3,653,195) | 3,454,092) | 3,193,344) | 3,009,800) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 1.71 | 1.51 | 1.38 | 1.41 | 1.41 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Amazon.com Inc. | 8.34 | 9.80 | 8.08 | — | — | |
| Home Depot Inc. | 5.25 | 5.00 | 5.10 | — | — | |
| Lowe’s Cos. Inc. | 3.71 | 3.73 | 3.85 | — | — | |
| TJX Cos. Inc. | 5.66 | 6.13 | 6.08 | — | — | |
| Inventory Turnover, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 6.36 | 6.83 | 6.07 | — | — | |
| Inventory Turnover, Industry | ||||||
| Consumer Discretionary | 7.04 | 7.48 | 7.72 | — | — | |
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
Inventory turnover = Cost of goods sold, including warehouse and distribution expenses ÷ Inventory
= 6,307,614 ÷ 3,686,383 = 1.71
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | O’Reilly Automotive Inc. inventory turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Receivables Turnover
O’Reilly Automotive Inc., receivables turnover 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) | ||||||
| Sales | 13,327,563) | 11,604,493) | 10,149,985) | 9,536,428) | 8,977,726) | |
| Accounts receivable, less allowance for doubtful accounts | 272,562) | 229,679) | 214,915) | 192,026) | 216,251) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 48.90 | 50.52 | 47.23 | 49.66 | 41.52 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Amazon.com Inc. | 23.26 | 26.09 | 22.26 | — | — | |
| Home Depot Inc. | 44.15 | 52.34 | 55.89 | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | |
| TJX Cos. Inc. | 69.69 | 108.00 | 112.54 | — | — | |
| Receivables Turnover, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 30.59 | 35.28 | 33.53 | — | — | |
| Receivables Turnover, Industry | ||||||
| Consumer Discretionary | 21.21 | 21.81 | 21.46 | — | — | |
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
Receivables turnover = Sales ÷ Accounts receivable, less allowance for doubtful accounts
= 13,327,563 ÷ 272,562 = 48.90
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | O’Reilly Automotive Inc. receivables turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Payables Turnover
O’Reilly Automotive Inc., payables turnover 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) | ||||||
| Cost of goods sold, including warehouse and distribution expenses | 6,307,614) | 5,518,801) | 4,755,294) | 4,496,462) | 4,257,043) | |
| Accounts payable | 4,695,312) | 4,184,662) | 3,604,722) | 3,376,403) | 3,190,029) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 1.34 | 1.32 | 1.32 | 1.33 | 1.33 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Amazon.com Inc. | 3.46 | 3.22 | 3.51 | — | — | |
| Home Depot Inc. | 7.52 | 9.33 | 9.16 | — | — | |
| Lowe’s Cos. Inc. | 5.51 | 6.42 | 5.85 | — | — | |
| TJX Cos. Inc. | 5.09 | 11.17 | 10.53 | — | — | |
| Payables Turnover, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 4.19 | 4.25 | 4.75 | — | — | |
| Payables Turnover, Industry | ||||||
| Consumer Discretionary | 4.66 | 4.74 | 5.51 | — | — | |
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
Payables turnover = Cost of goods sold, including warehouse and distribution expenses ÷ Accounts payable
= 6,307,614 ÷ 4,695,312 = 1.34
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | O’Reilly Automotive Inc. payables turnover ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Working Capital Turnover
O’Reilly Automotive Inc., working capital turnover 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) | ||||||
| Current assets | 4,504,262) | 4,499,787) | 3,833,662) | 3,543,102) | 3,397,672) | |
| Less: Current liabilities | 5,874,615) | 5,262,417) | 4,469,427) | 3,894,020) | 3,647,366) | |
| Working capital | (1,370,353) | (762,630) | (635,765) | (350,918) | (249,694) | |
| Sales | 13,327,563) | 11,604,493) | 10,149,985) | 9,536,428) | 8,977,726) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Amazon.com Inc. | 24.33 | 60.82 | 32.92 | — | — | |
| Home Depot Inc. | 24.87 | 76.81 | 59.68 | — | — | |
| Lowe’s Cos. Inc. | 24.92 | 530.50 | — | — | — | |
| TJX Cos. Inc. | 6.51 | 23.97 | 13.27 | — | — | |
| Working Capital Turnover, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 21.83 | 63.17 | 38.37 | — | — | |
| Working Capital Turnover, Industry | ||||||
| Consumer Discretionary | 11.02 | 13.68 | 25.90 | — | — | |
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
Working capital turnover = Sales ÷ Working capital
= 13,327,563 ÷ -1,370,353 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
O’Reilly Automotive Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 1.71 | 1.51 | 1.38 | 1.41 | 1.41 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 213 | 242 | 265 | 259 | 258 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Amazon.com Inc. | 44 | 37 | 45 | — | — | |
| Home Depot Inc. | 70 | 73 | 72 | — | — | |
| Lowe’s Cos. Inc. | 98 | 98 | 95 | — | — | |
| TJX Cos. Inc. | 65 | 60 | 60 | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 57 | 53 | 60 | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Consumer Discretionary | 52 | 49 | 47 | — | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.71 = 213
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | O’Reilly Automotive Inc. number of days of inventory outstanding improved from 2019 to 2020 and from 2020 to 2021. |
Average Receivable Collection Period
O’Reilly Automotive Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 48.90 | 50.52 | 47.23 | 49.66 | 41.52 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 7 | 7 | 8 | 7 | 9 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Amazon.com Inc. | 16 | 14 | 16 | — | — | |
| Home Depot Inc. | 8 | 7 | 7 | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | |
| TJX Cos. Inc. | 5 | 3 | 3 | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 12 | 10 | 11 | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Consumer Discretionary | 17 | 17 | 17 | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 48.90 = 7
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
O’Reilly Automotive Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 213 | 242 | 265 | 259 | 258 | |
| Average receivable collection period | 7 | 7 | 8 | 7 | 9 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 220 | 249 | 273 | 266 | 267 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Amazon.com Inc. | 60 | 51 | 61 | — | — | |
| Home Depot Inc. | 78 | 80 | 79 | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | |
| TJX Cos. Inc. | 70 | 63 | 63 | — | — | |
| Operating Cycle, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 69 | 63 | 71 | — | — | |
| Operating Cycle, Industry | ||||||
| Consumer Discretionary | 69 | 66 | 64 | — | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 213 + 7 = 220
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | O’Reilly Automotive Inc. operating cycle improved from 2019 to 2020 and from 2020 to 2021. |
Average Payables Payment Period
O’Reilly Automotive Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 1.34 | 1.32 | 1.32 | 1.33 | 1.33 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 272 | 277 | 277 | 274 | 274 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Amazon.com Inc. | 105 | 113 | 104 | — | — | |
| Home Depot Inc. | 49 | 39 | 40 | — | — | |
| Lowe’s Cos. Inc. | 66 | 57 | 62 | — | — | |
| TJX Cos. Inc. | 72 | 33 | 35 | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 87 | 86 | 77 | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Discretionary | 78 | 77 | 66 | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 1.34 = 272
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
O’Reilly Automotive Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 213 | 242 | 265 | 259 | 258 | |
| Average receivable collection period | 7 | 7 | 8 | 7 | 9 | |
| Average payables payment period | 272 | 277 | 277 | 274 | 274 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -52 | -28 | -4 | -8 | -7 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Amazon.com Inc. | -45 | -62 | -43 | — | — | |
| Home Depot Inc. | 29 | 41 | 39 | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | |
| TJX Cos. Inc. | -2 | 30 | 28 | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Consumer Discretionary Distribution & Retail | -18 | -23 | -6 | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Consumer Discretionary | -9 | -11 | -2 | — | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 213 + 7 – 272 = -52
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | O’Reilly Automotive Inc. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021. |