Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

O’Reilly Automotive Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Sales	13,327,563)	11,604,493)	10,149,985)	9,536,428)	8,977,726)
Cost of goods sold, including warehouse and distribution expenses	(6,307,614)	(5,518,801)	(4,755,294)	(4,496,462)	(4,257,043)
Gross profit	7,019,949)	6,085,692)	5,394,691)	5,039,966)	4,720,683)
Selling, general and administrative expenses	(4,102,781)	(3,666,356)	(3,473,965)	(3,224,782)	(2,995,283)
Operating income	2,917,168)	2,419,336)	1,920,726)	1,815,184)	1,725,400)
Interest expense	(144,768)	(161,126)	(139,975)	(122,129)	(91,349)
Interest income	1,971)	2,491)	2,545)	2,521)	2,347)
Other, net	7,543)	5,704)	7,033)	(1,489)	1,406)
Other income (expense)	(135,254)	(152,931)	(130,397)	(121,097)	(87,596)
Income before income taxes	2,781,914)	2,266,405)	1,790,329)	1,694,087)	1,637,804)
Provision for income taxes	(617,229)	(514,103)	(399,287)	(369,600)	(504,000)
Net income	2,164,685)	1,752,302)	1,391,042)	1,324,487)	1,133,804)

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 financial data reveals several notable trends in the company's performance over the five-year period ending in 2021.

Sales: There is a consistent upward trend in sales revenue, increasing from approximately $8.98 billion in 2017 to $13.33 billion in 2021. This suggests steady growth in the company's market presence or product demand.
Cost of Goods Sold (COGS): COGS also increased each year, from about $4.26 billion in 2017 to $6.31 billion in 2021, reflecting higher production and distribution costs that could be associated with the increased sales volume.
Gross Profit: Gross profit improved yearly from $4.72 billion in 2017 to $7.02 billion in 2021. The growth in gross profit indicates the company maintained or slightly improved its gross margin despite rising costs.
Selling, General and Administrative Expenses (SG&A): SG&A expenses rose steadily from $2.99 billion in 2017 to $4.10 billion in 2021. This increase is in line with general growth and may reflect expansion activities or higher overheads as the company scales.
Operating Income: Operating income showed consistent growth, increasing from $1.73 billion in 2017 to $2.92 billion in 2021. This growth outpaces the increase in SG&A, suggesting operational efficiency gains or effective cost controls beyond COGS.
Interest Expense and Income: Interest expense experienced a gradual increase from approximately $91 million in 2017 to $162 million in 2020, followed by a decrease to $145 million in 2021. Interest income remained relatively stable but low, hovering around $2 million annually.
Other Income (Expense): Other net income fluctuated, with negative values in some years but a slight overall increase by 2021. The net other income (expense) line remained a consistent expense, increasing from around $88 million in 2017 to $135 million in 2021.
Income Before Income Taxes: This metric increased steadily from $1.64 billion in 2017 to $2.78 billion in 2021, reflecting improved profitability before tax impacts.
Provision for Income Taxes: Income tax provision varied, initially declining from $504 million in 2017 to $370 million in 2018, then rising steadily to $617 million in 2021. The increase in taxes corresponds with rising pre-tax income.
Net Income: Net income showed a consistent increase from $1.13 billion in 2017 to $2.16 billion in 2021, nearly doubling over the five-year span. This growth indicates robust overall profitability improvements.

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O’Reilly Automotive Inc. (NASDAQ:ORLY)

Income Statement