Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
O’Reilly Automotive Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | O’Reilly Automotive Inc. gross profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | O’Reilly Automotive Inc. operating profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | O’Reilly Automotive Inc. net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | O’Reilly Automotive Inc. ROA improved from 2019 to 2020 and from 2020 to 2021. |
Gross Profit Margin
O’Reilly Automotive Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross profit | 7,019,949) | 6,085,692) | 5,394,691) | 5,039,966) | 4,720,683) | |
| Sales | 13,327,563) | 11,604,493) | 10,149,985) | 9,536,428) | 8,977,726) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 52.67% | 52.44% | 53.15% | 52.85% | 52.58% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Amazon.com Inc. | 42.03% | 39.57% | 40.99% | — | — | |
| Home Depot Inc. | 33.95% | 34.09% | 34.34% | — | — | |
| Lowe’s Cos. Inc. | 33.01% | 31.80% | 32.12% | — | — | |
| TJX Cos. Inc. | 23.66% | 28.46% | 28.59% | — | — | |
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).
1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Sales
= 100 × 7,019,949 ÷ 13,327,563 = 52.67%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | O’Reilly Automotive Inc. gross profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Operating Profit Margin
O’Reilly Automotive Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income | 2,917,168) | 2,419,336) | 1,920,726) | 1,815,184) | 1,725,400) | |
| Sales | 13,327,563) | 11,604,493) | 10,149,985) | 9,536,428) | 8,977,726) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 21.89% | 20.85% | 18.92% | 19.03% | 19.22% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Amazon.com Inc. | 5.30% | 5.93% | 5.18% | — | — | |
| Home Depot Inc. | 13.84% | 14.37% | 14.35% | — | — | |
| Lowe’s Cos. Inc. | 10.77% | 8.75% | 5.63% | — | — | |
| TJX Cos. Inc. | 1.81% | 10.59% | 10.82% | — | — | |
| Operating Profit Margin, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 7.38% | 8.11% | 7.68% | — | — | |
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | 8.16% | 5.53% | 7.81% | — | — | |
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).
1 2021 Calculation
Operating profit margin = 100 × Operating income ÷ Sales
= 100 × 2,917,168 ÷ 13,327,563 = 21.89%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | O’Reilly Automotive Inc. operating profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
Net Profit Margin
O’Reilly Automotive Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 2,164,685) | 1,752,302) | 1,391,042) | 1,324,487) | 1,133,804) | |
| Sales | 13,327,563) | 11,604,493) | 10,149,985) | 9,536,428) | 8,977,726) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 16.24% | 15.10% | 13.70% | 13.89% | 12.63% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Amazon.com Inc. | 7.10% | 5.53% | 4.13% | — | — | |
| Home Depot Inc. | 9.74% | 10.20% | 10.28% | — | — | |
| Lowe’s Cos. Inc. | 6.51% | 5.93% | 3.25% | — | — | |
| TJX Cos. Inc. | 0.28% | 7.84% | 7.85% | — | — | |
| Net Profit Margin, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 7.21% | 6.58% | 5.63% | — | — | |
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | 8.35% | 4.16% | 6.11% | — | — | |
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).
1 2021 Calculation
Net profit margin = 100 × Net income ÷ Sales
= 100 × 2,164,685 ÷ 13,327,563 = 16.24%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | O’Reilly Automotive Inc. net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
Return on Equity (ROE)
O’Reilly Automotive Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 2,164,685) | 1,752,302) | 1,391,042) | 1,324,487) | 1,133,804) | |
| Shareholders’ equity (deficit) | (66,423) | 140,258) | 397,340) | 353,667) | 653,046) | |
| Profitability Ratio | ||||||
| ROE1 | — | 1,249.34% | 350.09% | 374.50% | 173.62% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Amazon.com Inc. | 24.13% | 22.84% | 18.67% | — | — | |
| Home Depot Inc. | 390.00% | — | — | — | — | |
| Lowe’s Cos. Inc. | 406.05% | 217.09% | 63.50% | — | — | |
| TJX Cos. Inc. | 1.55% | 55.01% | 60.61% | — | — | |
| ROE, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 35.05% | 40.86% | 40.77% | — | — | |
| ROE, Industry | ||||||
| Consumer Discretionary | 30.07% | 18.30% | 31.39% | — | — | |
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).
1 2021 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity (deficit)
= 100 × 2,164,685 ÷ -66,423 = —
2 Click competitor name to see calculations.
Return on Assets (ROA)
O’Reilly Automotive Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 2,164,685) | 1,752,302) | 1,391,042) | 1,324,487) | 1,133,804) | |
| Total assets | 11,718,707) | 11,596,642) | 10,717,160) | 7,980,789) | 7,571,885) | |
| Profitability Ratio | ||||||
| ROA1 | 18.47% | 15.11% | 12.98% | 16.60% | 14.97% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Amazon.com Inc. | 7.93% | 6.64% | 5.14% | — | — | |
| Home Depot Inc. | 18.23% | 21.94% | 25.27% | — | — | |
| Lowe’s Cos. Inc. | 12.49% | 10.85% | 6.71% | — | — | |
| TJX Cos. Inc. | 0.29% | 13.55% | 21.36% | — | — | |
| ROA, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 9.17% | 9.20% | 8.83% | — | — | |
| ROA, Industry | ||||||
| Consumer Discretionary | 7.05% | 3.37% | 5.62% | — | — | |
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).
1 2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 2,164,685 ÷ 11,718,707 = 18.47%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | O’Reilly Automotive Inc. ROA improved from 2019 to 2020 and from 2020 to 2021. |