Net Profit Margin
since 2005
Calculation
O’Reilly Automotive Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income1 | ÷ | Sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 16.24% | = | 100 | × | 2,164,685) | ÷ | 13,327,563) |
| Dec 31, 2020 | 15.10% | = | 100 | × | 1,752,302) | ÷ | 11,604,493) |
| Dec 31, 2019 | 13.70% | = | 100 | × | 1,391,042) | ÷ | 10,149,985) |
| Dec 31, 2018 | 13.89% | = | 100 | × | 1,324,487) | ÷ | 9,536,428) |
| Dec 31, 2017 | 12.63% | = | 100 | × | 1,133,804) | ÷ | 8,977,726) |
| Dec 31, 2016 | 12.08% | = | 100 | × | 1,037,691) | ÷ | 8,593,096) |
| Dec 31, 2015 | 11.69% | = | 100 | × | 931,216) | ÷ | 7,966,674) |
| Dec 31, 2014 | 10.78% | = | 100 | × | 778,182) | ÷ | 7,216,081) |
| Dec 31, 2013 | 10.08% | = | 100 | × | 670,292) | ÷ | 6,649,237) |
| Dec 31, 2012 | 9.47% | = | 100 | × | 585,746) | ÷ | 6,182,184) |
| Dec 31, 2011 | 8.77% | = | 100 | × | 507,673) | ÷ | 5,788,816) |
| Dec 31, 2010 | 7.77% | = | 100 | × | 419,373) | ÷ | 5,397,525) |
| Dec 31, 2009 | 6.34% | = | 100 | × | 307,498) | ÷ | 4,847,062) |
| Dec 31, 2008 | 5.21% | = | 100 | × | 186,232) | ÷ | 3,576,553) |
| Dec 31, 2007 | 7.69% | = | 100 | × | 193,988) | ÷ | 2,522,319) |
| Dec 31, 2006 | 7.80% | = | 100 | × | 178,085) | ÷ | 2,283,222) |
| Dec 31, 2005 | 8.03% | = | 100 | × | 164,266) | ÷ | 2,045,318) |
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 trajectory from 2005 to 2021 is characterized by substantial growth in both top-line revenue and bottom-line profitability. While sales increased steadily throughout the period, net income growth accelerated at a faster pace over the long term, resulting in a significant expansion of the net profit margin.
- Revenue and Net Income Scaling
- Sales grew from approximately 2.05 billion US dollars in 2005 to over 13.33 billion US dollars by 2021. During the same period, net income rose from 164.3 million US dollars to 2.16 billion US dollars. This demonstrates a scaling of operations where income growth disproportionately exceeded revenue growth, indicating increased operational leverage.
- Net Profit Margin Volatility and Recovery
- A period of relative stability was observed between 2005 and 2007, with margins ranging between 7.69% and 8.03%. A sharp contraction occurred in 2008, when the net profit margin fell to a period low of 5.21%. A consistent recovery followed immediately in 2009, with the margin returning to pre-2008 levels by 2010.
- Long-term Margin Expansion
- From 2011 through 2021, a sustained upward trend in profitability is evident. The net profit margin climbed from 8.77% in 2011 to 16.24% in 2021. This steady increase, which more than doubled the margin over a decade, suggests significant improvements in operational efficiency, cost management, or pricing power.
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Comparison to Competitors
O’Reilly Automotive Inc., net profit margin, 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 | 16.24% | 7.10% | 9.74% | 6.51% | 0.28% |
| Dec 31, 2020 | 15.10% | 5.53% | 10.20% | 5.93% | 7.84% |
| Dec 31, 2019 | 13.70% | 4.13% | 10.28% | 3.25% | 7.85% |
| Dec 31, 2018 | 13.89% | 4.33% | 8.55% | 5.02% | 7.27% |
| Dec 31, 2017 | 12.63% | 1.71% | 8.41% | 4.76% | 6.93% |
| Dec 31, 2016 | 12.08% | 1.74% | 7.92% | 4.31% | 7.36% |
| Dec 31, 2015 | 11.69% | 0.56% | 7.63% | 4.80% | 7.62% |
| Dec 31, 2014 | 10.78% | -0.27% | 6.83% | 4.28% | 7.79% |
| Dec 31, 2013 | 10.08% | 0.37% | 6.07% | 3.88% | 7.37% |
| Dec 31, 2012 | 9.47% | -0.06% | 5.52% | 3.66% | 6.45% |
| Dec 31, 2011 | 8.77% | 1.31% | 4.91% | 4.12% | 6.12% |
| Dec 31, 2010 | 7.77% | 3.37% | 4.02% | 3.78% | 5.98% |
| Dec 31, 2009 | 6.34% | 3.68% | 3.17% | 4.55% | 4.63% |
| Dec 31, 2008 | 5.21% | 3.37% | 5.68% | 5.82% | 4.14% |
| Dec 31, 2007 | 7.69% | 3.21% | 6.34% | 6.62% | 4.24% |
| Dec 31, 2006 | 7.80% | 1.77% | 7.16% | 6.41% | 4.30% |
| Dec 31, 2005 | 8.03% | 4.23% | 6.84% | 5.97% | 4.45% |
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., net profit margin, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| O’Reilly Automotive Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Dec 31, 2021 | 16.24% | 7.21% |
| Dec 31, 2020 | 15.10% | 6.58% |
| Dec 31, 2019 | 13.70% | 5.63% |
| Dec 31, 2018 | 13.89% | 5.65% |
| Dec 31, 2017 | 12.63% | 4.42% |
| Dec 31, 2016 | 12.08% | 4.52% |
| Dec 31, 2015 | 11.69% | 4.30% |
| Dec 31, 2014 | 10.78% | 3.85% |
| Dec 31, 2013 | 10.08% | 3.85% |
| Dec 31, 2012 | 9.47% | 3.50% |
| Dec 31, 2011 | 8.77% | 3.92% |
| Dec 31, 2010 | 7.77% | 4.06% |
| Dec 31, 2009 | 6.34% | 3.83% |
| Dec 31, 2008 | 5.21% | 5.27% |
| Dec 31, 2007 | 7.69% | 5.93% |
| Dec 31, 2006 | 7.80% | 6.26% |
| Dec 31, 2005 | 8.03% | 6.17% |
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., net profit margin, long-term trends, comparison to industry (consumer discretionary)
| O’Reilly Automotive Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2021 | 16.24% | 9.12% |
| Dec 31, 2020 | 15.10% | 5.18% |
| Dec 31, 2019 | 13.70% | 5.92% |
| Dec 31, 2018 | 13.89% | 6.19% |
| Dec 31, 2017 | 12.63% | 4.38% |
| Dec 31, 2016 | 12.08% | 5.77% |
| Dec 31, 2015 | 11.69% | 6.37% |
| Dec 31, 2014 | 10.78% | 4.66% |
| Dec 31, 2013 | 10.08% | 5.29% |
| Dec 31, 2012 | 9.47% | 5.32% |
| Dec 31, 2011 | 8.77% | 8.80% |
| Dec 31, 2010 | 7.77% | 5.80% |
| Dec 31, 2009 | 6.34% | 4.94% |
| Dec 31, 2008 | 5.21% | 0.22% |
| Dec 31, 2007 | 7.69% | 3.23% |
| Dec 31, 2006 | 7.80% | 0.73% |
| Dec 31, 2005 | 8.03% | 4.49% |
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).