Stock Analysis on Net
Stock Analysis on Net

O’Reilly Automotive Inc. (NASDAQ:ORLY)

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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

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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
Self-insurance reserves
Accrued payroll
Accrued benefits and withholdings
Income taxes payable
Current portion of operating lease liabilities
Other current liabilities
Current liabilities
Long-term debt
Operating lease liabilities, less current portion
Deferred income taxes
Other liabilities
Noncurrent liabilities
Total liabilities
Preferred stock, $0.01 par value; none issued and outstanding shares
Common stock, $0.01 par value
Additional paid-in capital
Retained deficit
Accumulated other comprehensive income (loss)
Shareholders’ equity (deficit)
Total liabilities and shareholders’ equity (deficit)

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).

Liabilities Composition
The proportion of current liabilities relative to total liabilities and shareholders' equity exhibited fluctuations over the analyzed period. Beginning at 48.17% in 2017, it dipped to 41.7% in 2019 before ascending to its highest level of 50.13% in 2021. Accounts payable, representing a significant component of current liabilities, similarly decreased from 42.13% in 2017 to a low of 33.64% in 2019, followed by a recovery to 40.07% by 2021. Other current liability components such as accrued payroll and accrued benefits showed minor variability, with accrued benefits and withholdings rising notably in 2020 and 2021, indicating increased obligations in this category.
Long-Term Obligations
Long-term debt as a percentage of total liabilities and shareholders' equity demonstrated a general decline, decreasing from 39.33% in 2017 to 32.66% in 2021. Concurrently, operating lease liabilities became a more pronounced element of noncurrent liabilities from 2020 onwards, with the non-current portion stabilizing around 14.5% in the final years. Deferred income taxes and other liabilities remained relatively stable, with deferred income taxes gradually increasing, suggesting a rising deferred tax obligation.
Total Liabilities and Equity Position
Total liabilities increased as a share of the combined total, moving from 91.38% in 2017 to slightly exceeding 100% by 2021. This over-100% level in 2021 signifies a negative shareholders’ equity, confirmed by the equity figures. Shareholders’ equity steadily declined over the period, turning negative in 2021 at -0.57%, indicating that liabilities exceeded total assets. Additional paid-in capital showed a downward trend, reducing its contribution to the equity base, while retained deficit fluctuated but overall indicated growing accumulated losses, deepening from -8.09% to -11.65% in 2021.
Additional Observations
Income taxes payable were sporadically reported and relatively minor. The emergence of operating lease liabilities starting in 2019 and their significant presence thereafter reflect changes in lease accounting or new leasing commitments. The increase in accrued benefits and withholdings during 2020 and 2021 coincides with potential rising employee-related obligations. The accumulated other comprehensive income (loss) remained marginal but turned slightly negative toward the end, which may indicate minor unfavorable adjustments outside of net income.
Summary
The company’s financial structure over the analyzed years reveals increasing reliance on liabilities to finance its assets, resulting in diminishing positive equity that eventually turns negative. Shifts in liability composition, particularly the rise of operating lease obligations and sustained high accounts payable levels, suggest changes in financing and operational practices. The growth in retained deficit and reduction in additional paid-in capital further accentuate the weakening equity position. Overall, these trends point to a progressively leveraged balance sheet and increasing financial risk.