Stock Analysis on Net
Stock Analysis on Net

O’Reilly Automotive Inc. (NASDAQ:ORLY)

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

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases

O’Reilly Automotive Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — — 1,976,830 1,945,593
Total assets (adjusted) 11,718,707 11,596,642 10,717,160 9,957,619 9,517,478
Adjustment to Total Debt
Total debt (as reported) 3,826,978 4,123,217 3,890,527 3,417,122 2,978,390
Add: Operating lease liability (before adoption of FASB Topic 842)2 — — — 1,976,830 1,945,593
Add: Current portion of operating lease liabilities 337,832 322,778 316,061 — —
Add: Operating lease liabilities, less current portion 1,701,757 1,718,691 1,655,297 — —
Total debt (adjusted) 5,866,567 6,164,686 5,861,885 5,393,952 4,923,983

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, 2 Equal to total present value of future operating lease payments.

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

Adjusted Financial Ratios for Operating Leases (Summary)

O’Reilly Automotive Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Total Asset Turnover1
Reported total asset turnover 1.14 1.00 0.95 1.19 1.19
Adjusted total asset turnover 1.14 1.00 0.95 0.96 0.94
Debt to Equity2
Reported debt to equity — 29.40 9.79 9.66 4.56
Adjusted debt to equity — 43.95 14.75 15.25 7.54
Return on Assets3 (ROA)
Reported ROA 18.47% 15.11% 12.98% 16.60% 14.97%
Adjusted ROA 18.47% 15.11% 12.98% 13.30% 11.91%

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 See details »

2 See details »

3 See details »

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

Adjusted Total Asset Turnover

Microsoft Excel
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 Operating Leases
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 11,718,707 11,596,642 10,717,160 9,957,619 9,517,478
Activity Ratio
Adjusted total asset turnover2 1.14 1.00 0.95 0.96 0.94

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 ÷ 11,718,707 = 1.14

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.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
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
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt 5,866,567 6,164,686 5,861,885 5,393,952 4,923,983
Shareholders’ equity (deficit) (66,423) 140,258 397,340 353,667 653,046
Solvency Ratio
Adjusted debt to equity2 — 43.95 14.75 15.25 7.54

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 Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 3,826,978 ÷ -66,423 = —

2 Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity (deficit)
= 5,866,567 ÷ -66,423 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
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 Operating Leases
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 11,718,707 11,596,642 10,717,160 9,957,619 9,517,478
Profitability Ratio
Adjusted ROA2 18.47% 15.11% 12.98% 13.30% 11.91%

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 ÷ 11,718,707 = 18.47%

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.