Debt to Equity
since 2005
Calculation
O’Reilly Automotive Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt1 | ÷ | Shareholders’ equity (deficit)1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | — | = | 3,826,978) | ÷ | (66,423) |
| Dec 31, 2020 | 29.40 | = | 4,123,217) | ÷ | 140,258) |
| Dec 31, 2019 | 9.79 | = | 3,890,527) | ÷ | 397,340) |
| Dec 31, 2018 | 9.66 | = | 3,417,122) | ÷ | 353,667) |
| Dec 31, 2017 | 4.56 | = | 2,978,390) | ÷ | 653,046) |
| Dec 31, 2016 | 1.16 | = | 1,887,019) | ÷ | 1,627,136) |
| Dec 31, 2015 | 0.71 | = | 1,390,018) | ÷ | 1,961,314) |
| Dec 31, 2014 | 0.69 | = | 1,396,640) | ÷ | 2,018,418) |
| Dec 31, 2013 | 0.71 | = | 1,396,208) | ÷ | 1,966,321) |
| Dec 31, 2012 | 0.52 | = | 1,095,956) | ÷ | 2,108,307) |
| Dec 31, 2011 | 0.28 | = | 797,574) | ÷ | 2,844,851) |
| Dec 31, 2010 | 0.11 | = | 358,704) | ÷ | 3,209,685) |
| Dec 31, 2009 | 0.29 | = | 790,748) | ÷ | 2,685,865) |
| Dec 31, 2008 | 0.32 | = | 732,695) | ÷ | 2,282,218) |
| Dec 31, 2007 | 0.06 | = | 100,469) | ÷ | 1,592,477) |
| Dec 31, 2006 | 0.08 | = | 110,479) | ÷ | 1,364,096) |
| Dec 31, 2005 | 0.09 | = | 100,774) | ÷ | 1,145,769) |
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 several significant trends concerning the capital structure of the company over the period analyzed.
- Long-term Debt
- Long-term debt experienced considerable fluctuation throughout the years. Initially, debt levels remained relatively moderate, increasing gradually from approximately 100.8 million US dollars in 2005 to a peak of around 1.4 billion US dollars by 2013-2014. Following a period of substantial increase, the debt surged dramatically from 2015 onward, reaching a high of about 4.1 billion US dollars in 2020 before a slight reduction in 2021.
- Shareholders’ Equity (Deficit)
- Shareholders’ equity grew steadily in the early years, rising from about 1.1 billion US dollars in 2005 to a peak exceeding 3.2 billion US dollars in 2010. After 2010, equity began to decline sharply, dropping below 1 billion US dollars in 2017 and eventually turning negative by 2021, reaching a deficit of approximately 66.4 million US dollars. This indicates that equity has been eroding significantly in recent years.
- Debt to Equity Ratio
- The debt to equity ratio remained relatively low and stable in the initial period, staying under 0.3 until 2010, suggesting a conservative financial leverage approach. However, from 2011 onwards, the ratio increased substantially, reflecting the combined effect of rising debt levels and declining equity. A pronounced rise occurred between 2015 and 2020, with the ratio peaking at 29.4 in 2020 and no value reported for 2021. This indicates a highly leveraged capital structure by the end of the period.
Overall, the data suggests a marked shift in financial strategy over the years, characterized by increasing reliance on debt financing while equity has diminished and ultimately become negative. The rising debt to equity ratio points to increased financial risk and leverage in the company's capital structure, which could have implications for creditworthiness and financial stability.
Comparison to Competitors
O’Reilly Automotive Inc., debt to equity, 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 | — | 0.35 | 11.29 | 15.16 | 1.04 |
| Dec 31, 2020 | 29.40 | 0.34 | — | 9.79 | 0.38 |
| Dec 31, 2019 | 9.79 | 0.38 | — | 4.45 | 0.44 |
| Dec 31, 2018 | 9.66 | 0.54 | 18.59 | 2.89 | 0.43 |
| Dec 31, 2017 | 4.56 | 0.89 | 5.45 | 2.44 | 0.49 |
| Dec 31, 2016 | 1.16 | 0.40 | 3.37 | 1.65 | 0.38 |
| Dec 31, 2015 | 0.71 | 0.62 | 1.84 | 1.14 | 0.38 |
| Dec 31, 2014 | 0.69 | 0.77 | 1.18 | 0.89 | 0.30 |
| Dec 31, 2013 | 0.71 | 0.33 | 0.61 | 0.66 | 0.21 |
| Dec 31, 2012 | 0.52 | 0.38 | 0.60 | 0.46 | 0.25 |
| Dec 31, 2011 | 0.28 | 0.03 | 0.52 | 0.36 | 0.25 |
| Dec 31, 2010 | 0.11 | 0.03 | 0.50 | 0.27 | 0.27 |
| Dec 31, 2009 | 0.29 | 0.02 | 0.64 | 0.34 | 0.36 |
| Dec 31, 2008 | 0.32 | 0.15 | 0.76 | 0.41 | 0.40 |
| Dec 31, 2007 | 0.06 | 1.07 | 0.47 | 0.28 | 0.35 |
| Dec 31, 2006 | 0.08 | 2.89 | 0.15 | 0.25 | 0.43 |
| Dec 31, 2005 | 0.09 | 6.18 | 0.09 | 0.32 | 0.42 |
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., debt to equity, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| O’Reilly Automotive Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Dec 31, 2021 | — | 0.77 |
| Dec 31, 2020 | 29.40 | 0.86 |
| Dec 31, 2019 | 9.79 | 1.03 |
| Dec 31, 2018 | 9.66 | 1.24 |
| Dec 31, 2017 | 4.56 | 1.54 |
| Dec 31, 2016 | 1.16 | 1.15 |
| Dec 31, 2015 | 0.71 | 1.04 |
| Dec 31, 2014 | 0.69 | 0.88 |
| Dec 31, 2013 | 0.71 | 0.53 |
| Dec 31, 2012 | 0.52 | 0.49 |
| Dec 31, 2011 | 0.28 | 0.36 |
| Dec 31, 2010 | 0.11 | 0.33 |
| Dec 31, 2009 | 0.29 | 0.43 |
| Dec 31, 2008 | 0.32 | 0.55 |
| Dec 31, 2007 | 0.06 | 0.41 |
| Dec 31, 2006 | 0.08 | 0.22 |
| Dec 31, 2005 | 0.09 | 0.21 |
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., debt to equity, long-term trends, comparison to industry (consumer discretionary)
| O’Reilly Automotive Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2021 | — | 1.42 |
| Dec 31, 2020 | 29.40 | 2.17 |
| Dec 31, 2019 | 9.79 | 2.60 |
| Dec 31, 2018 | 9.66 | 2.59 |
| Dec 31, 2017 | 4.56 | 2.55 |
| Dec 31, 2016 | 1.16 | 2.21 |
| Dec 31, 2015 | 0.71 | 1.88 |
| Dec 31, 2014 | 0.69 | 1.60 |
| Dec 31, 2013 | 0.71 | 1.25 |
| Dec 31, 2012 | 0.52 | 1.19 |
| Dec 31, 2011 | 0.28 | 1.09 |
| Dec 31, 2010 | 0.11 | 1.26 |
| Dec 31, 2009 | 0.29 | 2.58 |
| Dec 31, 2008 | 0.32 | 4.06 |
| Dec 31, 2007 | 0.06 | 2.62 |
| Dec 31, 2006 | 0.08 | 2.96 |
| Dec 31, 2005 | 0.09 | 2.35 |
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).