Gross Margin % is calculated as gross profit divided by its revenue. O'Reilly Automotive's Gross Profit for the
three
months ended in Dec. 2023 was $1,967 Mil. O'Reilly Automotive's Revenue for the
three
months ended in Dec. 2023 was $3,832 Mil. Therefore, O'Reilly Automotive's Gross Margin % for the quarter that ended in Dec. 2023 was 51.34%.
The historical rank and industry rank for O'Reilly Automotive's Gross Margin % or its related term are showing as below:
ORLY'
s Gross Margin % Range Over the Past 10 Years
Min: 51.23 Med: 52.46 Max: 53.15
Current: 51.26
During the past 13 years, the highestGross Margin % of O'Reilly Automotive was 53.15%. The lowest was 51.23%. And the median was 52.46%.
ORLY's Gross Margin % is ranked better than 74.91% of 1096
companies
in the Retail - Cyclical industry
Industry Median: 36.74
vs ORLY: 51.26
O'Reilly Automotive had a gross margin of 51.34% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for O'Reilly Automotive was -0.70% per year.
O'Reilly Automotive Gross Margin % Historical Data
The historical data trend for O'Reilly Automotive's Gross Margin % 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
Gross Margin %
53.15
52.44
52.67
51.23
51.26
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
Gross Margin %
50.87
50.98
51.28
51.40
51.34
Competitive Comparison
For the Specialty Retail subindustry, O'Reilly Automotive's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, O'Reilly Automotive's Gross Margin % distribution charts can be found below:
* The bar in red indicates where O'Reilly Automotive's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
O'Reilly Automotive had a gross margin of 51.34% for the quarter that ended in Dec. 2023 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
O'Reilly Automotive Gross Margin % Related Terms
Thank you for viewing the detailed overview of O'Reilly Automotive's Gross Margin % 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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