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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.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

O’Reilly Automotive Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Accounts payable 40.07 36.09 33.64 42.31 42.13
Self-insurance reserves 1.10 0.94 0.74 0.96 0.95
Accrued payroll 0.92 0.77 0.94 1.08 1.02
Accrued benefits and withholdings 2.00 2.09 0.92 1.12 0.92
Income taxes payable 0.00 0.14 0.00 0.14 0.00
Current portion of operating lease liabilities 2.88 2.78 2.95 0.00 0.00
Other current liabilities 3.16 2.56 2.52 3.18 3.16
Current liabilities 50.13% 45.38% 41.70% 48.79% 48.17%
Long-term debt 32.66 35.56 36.30 42.82 39.33
Operating lease liabilities, less current portion 14.52 14.82 15.45 0.00 0.00
Deferred income taxes 1.50 1.34 1.24 1.32 1.13
Other liabilities 1.76 1.69 1.60 2.64 2.74
Noncurrent liabilities 50.44% 53.41% 54.59% 46.78% 43.21%
Total liabilities 100.57% 98.79% 96.29% 95.57% 91.38%
Preferred stock, $0.01 par value; none issued and outstanding shares 0.00 0.00 0.00 0.00 0.00
Common stock, $0.01 par value 0.01 0.01 0.01 0.01 0.01
Additional paid-in capital 11.14 11.04 11.95 15.81 16.71
Retained deficit -11.65 -9.82 -8.30 -11.39 -8.09
Accumulated other comprehensive income (loss) -0.06 -0.02 0.05 0.00 0.00
Shareholders’ equity (deficit) -0.57% 1.21% 3.71% 4.43% 8.62%
Total liabilities and shareholders’ equity (deficit) 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The capital structure reveals a consistent shift toward liability-based financing, culminating in a stockholders' deficit by the end of the analyzed period. Total liabilities have steadily increased as a percentage of total liabilities and shareholders' equity, rising from 91.38% in 2017 to 100.57% in 2021. This trend is mirrored by a corresponding decline in shareholders' equity, which dropped from 8.62% in 2017 to -0.57% in 2021.

Current Liabilities Trends
Current liabilities have remained a significant component of the balance sheet, fluctuating between 41.70% and 50.13%. Accounts payable represent the largest single liability, peaking at 42.31% in 2018 before stabilizing around 40.07% by 2021. A notable change occurred in 2019 with the introduction of current operating lease liabilities, which stabilized at approximately 2.8% to 2.9% of the total structure through 2021.
Noncurrent Liabilities and Debt Profile
Noncurrent liabilities experienced a general increase from 43.21% in 2017 to 50.44% in 2021. While long-term debt showed a gradual decline from 39.33% to 32.66% over the five-year period, this was offset by the recognition of long-term operating lease liabilities starting in 2019, which added approximately 14.5% to 15.5% to the total liability composition.
Equity Erosion and Retained Deficit
A systemic reduction in shareholders' equity is evident. Additional paid-in capital declined from 16.71% in 2017 to 11.14% in 2021. Simultaneously, the retained deficit deepened from -8.09% to -11.65%. The combination of a growing retained deficit and decreasing paid-in capital led to the transition from a positive equity position to a deficit by the end of 2021.

The overall financial trajectory indicates a strategy that relies heavily on short-term obligations and lease liabilities to fund operations, while simultaneously reducing the equity base. The transition to a negative equity position suggests that liabilities now exceed the total value of the company's assets as recorded on the balance sheet.

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