Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

O’Reilly Automotive Inc., balance sheet: goodwill and intangible assets

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Goodwill	879,340)	881,030)	936,814)	807,260)	789,058)
Trade names	8,110)	8,363)	—)	—)	—)
Favorable leases	—)	—)	—)	18,930)	22,500)
Non-compete agreements	6,915)	7,183)	2,717)	2,757)	1,851)
Other intangible assets	11,832)	12,200)	—)	—)	—)
Finite-lived intangible assets, cost	26,857)	27,746)	2,717)	21,687)	24,351)
Accumulated amortization	(12,009)	(6,860)	(928)	(13,243)	(14,959)
Finite-lived intangible assets, net	14,848)	20,886)	1,789)	8,444)	9,392)
Trade names	34,348)	35,420)	—)	—)	—)
Unfavorable leases	—)	—)	—)	1,694)	2,617)
Indefinite-lived intangible assets	34,348)	35,420)	—)	1,694)	2,617)
Intangible assets	49,196)	56,306)	1,789)	10,138)	12,009)
Goodwill and other intangibles	928,536)	937,336)	938,603)	817,398)	801,067)

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).

Download chart

Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	O’Reilly Automotive Inc. goodwill decreased from 2019 to 2020 and from 2020 to 2021.
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	O’Reilly Automotive Inc. intangible assets increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Goodwill and other intangibles	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	O’Reilly Automotive Inc. goodwill and other intangibles decreased from 2019 to 2020 and from 2020 to 2021.

O’Reilly Automotive Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported)	11,718,707)	11,596,642)	10,717,160)	7,980,789)	7,571,885)
Less: Goodwill	879,340)	881,030)	936,814)	807,260)	789,058)
Total assets (adjusted)	10,839,367)	10,715,612)	9,780,346)	7,173,529)	6,782,827)
Adjustment to Shareholders’ Equity (deficit)
Shareholders’ equity (deficit) (as reported)	(66,423)	140,258)	397,340)	353,667)	653,046)
Less: Goodwill	879,340)	881,030)	936,814)	807,260)	789,058)
Shareholders’ equity (deficit) (adjusted)	(945,763)	(740,772)	(539,474)	(453,593)	(136,012)

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).

O’Reilly Automotive Inc., Financial Data: Reported vs. Adjusted

Download chart

O’Reilly Automotive Inc., adjusted financial ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Total Asset Turnover
Reported total asset turnover	1.14	1.00	0.95	1.19	1.19
Adjusted total asset turnover	1.23	1.08	1.04	1.33	1.32
Financial Leverage
Reported financial leverage	—	82.68	26.97	22.57	11.59
Adjusted financial leverage	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	—	1,249.34%	350.09%	374.50%	173.62%
Adjusted ROE	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	18.47%	15.11%	12.98%	16.60%	14.97%
Adjusted ROA	19.97%	16.35%	14.22%	18.46%	16.72%

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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	O’Reilly Automotive Inc. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	O’Reilly Automotive Inc. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.

O’Reilly Automotive Inc., Financial Ratios: Reported vs. Adjusted

Download chart

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Sales	13,327,563)	11,604,493)	10,149,985)	9,536,428)	8,977,726)
Total assets	11,718,707)	11,596,642)	10,717,160)	7,980,789)	7,571,885)
Activity Ratio
Total asset turnover¹	1.14	1.00	0.95	1.19	1.19
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Sales	13,327,563)	11,604,493)	10,149,985)	9,536,428)	8,977,726)
Adjusted total assets	10,839,367)	10,715,612)	9,780,346)	7,173,529)	6,782,827)
Activity Ratio
Adjusted total asset turnover²	1.23	1.08	1.04	1.33	1.32

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 Total asset turnover = Sales ÷ Total assets
= 13,327,563 ÷ 11,718,707 = 1.14

² Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 13,327,563 ÷ 10,839,367 = 1.23

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	O’Reilly Automotive Inc. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
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
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	10,839,367)	10,715,612)	9,780,346)	7,173,529)	6,782,827)
Adjusted shareholders’ equity (deficit)	(945,763)	(740,772)	(539,474)	(453,593)	(136,012)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—

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 Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 11,718,707 ÷ -66,423 = —

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity (deficit)
= 10,839,367 ÷ -945,763 = —

Download chart

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,164,685)	1,752,302)	1,391,042)	1,324,487)	1,133,804)
Shareholders’ equity (deficit)	(66,423)	140,258)	397,340)	353,667)	653,046)
Profitability Ratio
ROE¹	—	1,249.34%	350.09%	374.50%	173.62%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	2,164,685)	1,752,302)	1,391,042)	1,324,487)	1,133,804)
Adjusted shareholders’ equity (deficit)	(945,763)	(740,772)	(539,474)	(453,593)	(136,012)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—

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 ROE = 100 × Net income ÷ Shareholders’ equity (deficit)
= 100 × 2,164,685 ÷ -66,423 = —

² Adjusted ROE = 100 × Net income ÷ Adjusted shareholders’ equity (deficit)
= 100 × 2,164,685 ÷ -945,763 = —

Download chart

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,164,685)	1,752,302)	1,391,042)	1,324,487)	1,133,804)
Total assets	11,718,707)	11,596,642)	10,717,160)	7,980,789)	7,571,885)
Profitability Ratio
ROA¹	18.47%	15.11%	12.98%	16.60%	14.97%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	2,164,685)	1,752,302)	1,391,042)	1,324,487)	1,133,804)
Adjusted total assets	10,839,367)	10,715,612)	9,780,346)	7,173,529)	6,782,827)
Profitability Ratio
Adjusted ROA²	19.97%	16.35%	14.22%	18.46%	16.72%

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).

2021 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 2,164,685 ÷ 11,718,707 = 18.47%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 2,164,685 ÷ 10,839,367 = 19.97%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	O’Reilly Automotive Inc. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.

O’Reilly Automotive Inc. (NASDAQ:ORLY)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

O’Reilly Automotive Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

O’Reilly Automotive Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)