Current Ratio
since 2005
Calculation
O’Reilly Automotive Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 0.77 | = | 4,504,262) | ÷ | 5,874,615) |
| Dec 31, 2020 | 0.86 | = | 4,499,787) | ÷ | 5,262,417) |
| Dec 31, 2019 | 0.86 | = | 3,833,662) | ÷ | 4,469,427) |
| Dec 31, 2018 | 0.91 | = | 3,543,102) | ÷ | 3,894,020) |
| Dec 31, 2017 | 0.93 | = | 3,397,672) | ÷ | 3,647,366) |
| Dec 31, 2016 | 0.96 | = | 3,257,975) | ÷ | 3,400,649) |
| Dec 31, 2015 | 0.99 | = | 3,010,026) | ÷ | 3,046,398) |
| Dec 31, 2014 | 1.08 | = | 3,066,978) | ÷ | 2,830,556) |
| Dec 31, 2013 | 1.17 | = | 2,835,201) | ÷ | 2,423,010) |
| Dec 31, 2012 | 1.20 | = | 2,732,948) | ÷ | 2,272,865) |
| Dec 31, 2011 | 1.65 | = | 2,607,610) | ÷ | 1,580,010) |
| Dec 31, 2010 | 1.87 | = | 2,301,252) | ÷ | 1,228,958) |
| Dec 31, 2009 | 1.81 | = | 2,226,719) | ÷ | 1,231,375) |
| Dec 31, 2008 | 1.78 | = | 1,875,433) | ÷ | 1,053,501) |
| Dec 31, 2007 | 2.08 | = | 1,102,304) | ÷ | 528,976) |
| Dec 31, 2006 | 2.31 | = | 1,000,676) | ÷ | 433,784) |
| Dec 31, 2005 | 1.88 | = | 910,655) | ÷ | 485,681) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial data reveals a long-term decline in the liquidity position of the organization, characterized by a consistent reduction in the current ratio from 2005 through 2021. While both current assets and current liabilities grew substantially in absolute terms over this period, the growth rate of liabilities eventually outpaced that of assets, leading to a structural shift in the working capital profile.
- Asset and Liability Growth Trends
- Current assets grew from 910,655 thousand US dollars in 2005 to 4,504,262 thousand US dollars by 2021. During the same interval, current liabilities experienced a more aggressive increase, rising from 485,681 thousand US dollars to 5,874,615 thousand US dollars. A notable surge in both categories occurred between 2007 and 2009, after which growth continued but the gap between liabilities and assets widened.
- Liquidity Ratio Trajectory
- The current ratio evolved through three distinct phases. Between 2005 and 2011, the organization maintained a strong liquidity cushion, with the ratio remaining above 1.65 and peaking at 2.31 in 2006. From 2012 to 2015, a period of rapid compression is observed, with the ratio falling from 1.20 to 0.99, signaling a transition toward a tighter liquidity position.
- Working Capital Deficit
- Starting in 2015, the current ratio dropped below the 1.0 threshold, indicating that current liabilities exceeded current assets. This trend persisted and intensified through 2021, with the ratio reaching a period low of 0.77. This sustained trajectory suggests a strategic shift in managing short-term obligations or an increased reliance on spontaneous financing, such as accounts payable, to fund operations.
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Comparison to Competitors
O’Reilly Automotive Inc., current ratio, long-term trends, comparison to competitors
| O’Reilly Automotive Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 0.77 | 1.14 | 1.23 | 1.19 | 1.46 |
| Dec 31, 2020 | 0.86 | 1.05 | 1.08 | 1.01 | 1.24 |
| Dec 31, 2019 | 0.86 | 1.10 | 1.11 | 0.98 | 1.53 |
| Dec 31, 2018 | 0.91 | 1.10 | 1.17 | 1.06 | 1.66 |
| Dec 31, 2017 | 0.93 | 1.04 | 1.25 | 1.00 | 1.63 |
| Dec 31, 2016 | 0.96 | 1.04 | 1.36 | 1.01 | 1.54 |
| Dec 31, 2015 | 0.99 | 1.08 | 1.36 | 1.08 | 1.71 |
| Dec 31, 2014 | 1.08 | 1.12 | 1.42 | 1.16 | 1.72 |
| Dec 31, 2013 | 1.17 | 1.07 | 1.34 | 1.27 | 1.52 |
| Dec 31, 2012 | 1.20 | 1.12 | 1.55 | 1.28 | 1.68 |
| Dec 31, 2011 | 1.65 | 1.17 | 1.33 | 1.40 | 1.63 |
| Dec 31, 2010 | 1.87 | 1.33 | 1.34 | 1.32 | 1.66 |
| Dec 31, 2009 | 1.81 | 1.33 | 1.20 | 1.15 | 1.31 |
| Dec 31, 2008 | 1.78 | 1.30 | 1.15 | 1.12 | 1.45 |
| Dec 31, 2007 | 2.08 | 1.39 | 1.39 | 1.27 | 1.57 |
| Dec 31, 2006 | 2.31 | 1.33 | 1.19 | 1.34 | 1.39 |
| Dec 31, 2005 | 1.88 | 1.52 | 1.35 | 1.22 | 1.32 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
O’Reilly Automotive Inc., current ratio, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| O’Reilly Automotive Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Dec 31, 2021 | 0.77 | 1.17 |
| Dec 31, 2020 | 0.86 | 1.06 |
| Dec 31, 2019 | 0.86 | 1.10 |
| Dec 31, 2018 | 0.91 | 1.13 |
| Dec 31, 2017 | 0.93 | 1.10 |
| Dec 31, 2016 | 0.96 | 1.12 |
| Dec 31, 2015 | 0.99 | 1.17 |
| Dec 31, 2014 | 1.08 | 1.23 |
| Dec 31, 2013 | 1.17 | 1.21 |
| Dec 31, 2012 | 1.20 | 1.30 |
| Dec 31, 2011 | 1.65 | 1.31 |
| Dec 31, 2010 | 1.87 | 1.36 |
| Dec 31, 2009 | 1.81 | 1.23 |
| Dec 31, 2008 | 1.78 | 1.20 |
| Dec 31, 2007 | 2.08 | 1.38 |
| Dec 31, 2006 | 2.31 | 1.26 |
| Dec 31, 2005 | 1.88 | 1.32 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Discretionary)
O’Reilly Automotive Inc., current ratio, long-term trends, comparison to industry (consumer discretionary)
| O’Reilly Automotive Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2021 | 0.77 | 1.25 |
| Dec 31, 2020 | 0.86 | 1.19 |
| Dec 31, 2019 | 0.86 | 1.10 |
| Dec 31, 2018 | 0.91 | 1.15 |
| Dec 31, 2017 | 0.93 | 1.15 |
| Dec 31, 2016 | 0.96 | 1.12 |
| Dec 31, 2015 | 0.99 | 1.25 |
| Dec 31, 2014 | 1.08 | 1.11 |
| Dec 31, 2013 | 1.17 | 1.15 |
| Dec 31, 2012 | 1.20 | 1.14 |
| Dec 31, 2011 | 1.65 | 1.31 |
| Dec 31, 2010 | 1.87 | 1.24 |
| Dec 31, 2009 | 1.81 | 1.25 |
| Dec 31, 2008 | 1.78 | 0.96 |
| Dec 31, 2007 | 2.08 | 1.21 |
| Dec 31, 2006 | 2.31 | 1.15 |
| Dec 31, 2005 | 1.88 | 1.10 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).