O’Reilly Automotive Inc. (NASDAQ:ORLY)

The financial data over the five-year period reveals several notable trends in the composition of assets.

Cash and cash equivalents

There is a marked increase in cash and cash equivalents as a percentage of total assets from 0.38% in 2019 to 4.02% in 2020, followed by a decline to 3.09% in 2021. This indicates a significant rise in liquidity during 2020, possibly in response to market or operational uncertainty, with a partial reduction the following year.

Accounts receivable, less allowance for doubtful accounts

This item shows a consistent decline from 2.86% in 2017 to 1.98% in 2020, then an uptick to 2.33% in 2021. The initial decrease suggests improved collection or lower credit sales, while the increase in 2021 indicates a slight reversal or higher sales on credit.

Amounts receivable from suppliers

The percentage remains relatively stable with a slight downward fluctuation, moving from 1.01% in 2017 to 0.97% in 2021, indicating consistent but limited amounts owed by suppliers over the period.

Inventory

Inventory as a percentage of total assets declines markedly from a peak of 40.01% in 2018 to 31.46% in 2021. This suggests better inventory management or changes in product mix that require less capital invested in stock.

Other current assets

Values here decrease from 0.65% in 2017 to 0.42% in 2019, then gradually increase to 0.6% in 2021. The fluctuations suggest minor changes in other short-term assets held by the firm.

Current assets

Current assets as a percentage of total assets decrease significantly from 44.87% in 2017 to 35.77% in 2019, then increase to 38.44% by 2021. This trend aligns with inventory and cash trends and shows a general contraction followed by partial recovery in current asset holdings.

Net property and equipment

There is a decrease in investment in net property and equipment from 44.95% in 2018 to 35.96% in 2021, indicating possible divestment, asset depreciation, or slower capital expenditure growth from prior levels.

Operating lease, right-of-use assets

This category appears from 2019 onwards due to accounting changes and remains relatively stable around 17% of total assets. Its significant share reflects a substantial reliance on leased operating assets.

Goodwill

Goodwill consistently decreases as a portion of total assets from 10.42% in 2017 to 7.5% in 2021, suggesting no major recent acquisitions or impairment write-downs reducing the goodwill balance.

Other assets, net

Other noncurrent assets increase gradually from 0.55% in 2017 to 1.19% in 2021, reflecting a modest growth in miscellaneous asset categories outside core property and lease assets.

Noncurrent assets

The share of noncurrent assets rises from 55.13% in 2017 to a peak of 64.23% in 2019, then declines somewhat to 61.56% in 2021, showing an initial buildup followed by a slight reduction or asset reallocation.

Total assets

Remains consistent by definition at 100% across all years, serving as the denominator for ratio calculations.

Overall, the data portrays a company that has restructured its asset base over the period, decreasing its reliance on inventories and net property while increasing liquidity and embracing leased assets. The shifts suggest strategic adjustments, possibly to enhance operational flexibility or respond to external conditions, with a cautious approach to capital investment and an increased emphasis on asset-light arrangements as seen in the stable lease asset proportion.