Operating Profit Margin
since 2005
Calculation
O’Reilly Automotive Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 21.89% | = | 100 | × | 2,917,168) | ÷ | 13,327,563) |
| Dec 31, 2020 | 20.85% | = | 100 | × | 2,419,336) | ÷ | 11,604,493) |
| Dec 31, 2019 | 18.92% | = | 100 | × | 1,920,726) | ÷ | 10,149,985) |
| Dec 31, 2018 | 19.03% | = | 100 | × | 1,815,184) | ÷ | 9,536,428) |
| Dec 31, 2017 | 19.22% | = | 100 | × | 1,725,400) | ÷ | 8,977,726) |
| Dec 31, 2016 | 19.77% | = | 100 | × | 1,699,206) | ÷ | 8,593,096) |
| Dec 31, 2015 | 19.00% | = | 100 | × | 1,514,021) | ÷ | 7,966,674) |
| Dec 31, 2014 | 17.60% | = | 100 | × | 1,270,374) | ÷ | 7,216,081) |
| Dec 31, 2013 | 16.60% | = | 100 | × | 1,103,485) | ÷ | 6,649,237) |
| Dec 31, 2012 | 15.81% | = | 100 | × | 977,393) | ÷ | 6,182,184) |
| Dec 31, 2011 | 14.97% | = | 100 | × | 866,766) | ÷ | 5,788,816) |
| Dec 31, 2010 | 13.21% | = | 100 | × | 712,776) | ÷ | 5,397,525) |
| Dec 31, 2009 | 11.09% | = | 100 | × | 537,619) | ÷ | 4,847,062) |
| Dec 31, 2008 | 9.38% | = | 100 | × | 335,617) | ÷ | 3,576,553) |
| Dec 31, 2007 | 12.10% | = | 100 | × | 305,151) | ÷ | 2,522,319) |
| Dec 31, 2006 | 12.36% | = | 100 | × | 282,315) | ÷ | 2,283,222) |
| Dec 31, 2005 | 12.35% | = | 100 | × | 252,524) | ÷ | 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
Between 2005 and 2021, there was a significant and sustained expansion in both operating income and total sales, indicating robust scaling of operations. Operating income grew from approximately 252.5 million US dollars to 2.92 billion US dollars, while sales increased from 2.05 billion US dollars to 13.33 billion US dollars over the same period.
- Operating Profit Margin Volatility and Recovery
- From 2005 to 2007, the operating profit margin remained relatively stable, fluctuating slightly between 12.10% and 12.36%. A sharp contraction occurred in 2008, with the margin dropping to a period low of 9.38%. This decline was followed by a recovery in 2009, where the margin returned to 11.09%.
- Long-term Efficiency Gains
- A consistent upward trend in profitability is observed from 2010 through 2016. During this seven-year window, the operating profit margin climbed steadily from 13.21% to 19.77%. This suggests a successful scaling of the business model where operating expenses grew at a slower rate than total revenue.
- Stabilization and Recent Acceleration
- Between 2017 and 2019, the margin entered a phase of relative stabilization, experiencing a marginal decline from 19.22% to 18.92%. However, this plateau was followed by a strong acceleration in the final two years of the period, with the margin rising to 20.85% in 2020 and reaching a peak of 21.89% by December 31, 2021.
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Comparison to Competitors
O’Reilly Automotive Inc., operating profit margin, long-term trends, comparison to competitors
| O’Reilly Automotive Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | |
|---|---|---|---|---|
| Dec 31, 2021 | 21.89% | 5.30% | 13.84% | 10.77% |
| Dec 31, 2020 | 20.85% | 5.93% | 14.37% | 8.75% |
| Dec 31, 2019 | 18.92% | 5.18% | 14.35% | 5.63% |
| Dec 31, 2018 | 19.03% | 5.33% | 14.55% | 9.60% |
| Dec 31, 2017 | 19.22% | 2.31% | 14.19% | 8.99% |
| Dec 31, 2016 | 19.77% | 3.08% | 13.30% | 8.41% |
| Dec 31, 2015 | 19.00% | 2.09% | 12.59% | 8.52% |
| Dec 31, 2014 | 17.60% | 0.20% | 11.63% | 0.00% |
| Dec 31, 2013 | 16.60% | 1.00% | 10.39% | 0.00% |
| Dec 31, 2012 | 15.81% | 1.11% | 9.46% | 0.00% |
| Dec 31, 2011 | 14.97% | 1.79% | 8.59% | 0.00% |
| Dec 31, 2010 | 13.21% | 4.11% | 7.26% | 0.00% |
| Dec 31, 2009 | 11.09% | 4.61% | 6.11% | 0.00% |
| Dec 31, 2008 | 9.38% | 4.39% | 9.36% | 0.00% |
| Dec 31, 2007 | 12.10% | 4.42% | 10.65% | 0.00% |
| Dec 31, 2006 | 12.36% | 3.63% | 11.49% | 0.00% |
| Dec 31, 2005 | 12.35% | 5.09% | 10.84% | 0.00% |
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).