The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. O'Reilly Automotive's Cash Ratio for the quarter that ended in Dec. 2023 was 0.04.
O'Reilly Automotive has a Cash Ratio of 0.04. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for O'Reilly Automotive's Cash Ratio or its related term are showing as below:
ORLY'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.04 Max: 0.09
Current: 0.04
During the past 13 years, O'Reilly Automotive's highest Cash Ratio was 0.09. The lowest was 0.01. And the median was 0.04.
ORLY's Cash Ratio is ranked worse than 91.51% of 1096
companies
in the Retail - Cyclical industry
Industry Median: 0.38
vs ORLY: 0.04
O'Reilly Automotive Cash Ratio Historical Data
The historical data trend for O'Reilly Automotive's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
O'Reilly Automotive Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Cash Ratio
0.01
0.09
0.06
0.02
0.04
O'Reilly Automotive Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Cash Ratio
0.02
0.01
0.01
0.01
0.04
Competitive Comparison
For the Specialty Retail subindustry, O'Reilly Automotive's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
O'Reilly Automotive Cash Ratio Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, O'Reilly Automotive's Cash Ratio distribution charts can be found below:
* The bar in red indicates where O'Reilly Automotive's Cash Ratio falls into.
O'Reilly Automotive Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
O'Reilly Automotive's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
O'Reilly Automotive (NAS:ORLY) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
O'Reilly Automotive Cash Ratio Related Terms
Thank you for viewing the detailed overview of O'Reilly Automotive's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
O'Reilly Automotive (O'Reilly Automotive) Business Description
O'Reilly Automotive is one of the largest sellers of aftermarket automotive parts, tools, and accessories, serving professional and DIY customers (44% and 56% of 2022 sales, respectively). The company sells branded as well as own-label products, with the latter category comprising nearly half of sales. O'Reilly had 5,971 stores as of the end of 2022, spread across 47 U.S. states and including 42 stores in Mexico. The firm serves professional and DIY customers through its stores and also employs approximately 725 sales personnel targeting commercial buyers.
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