Check out the cash flow statement. ORLY burned $130Mn in 2009. Their "earnings" are bogus and likely a result of aggressive accounting, particularly under-depreciation. I look at a couple of hundred companies, and can't find another one where the disconnect between reported income and cash flow is so big.
I do not even want to get into the irregular accounting practices concerning shrink and hidden loses with this company. It is worse than what CSK had. It really is that scary. I guarantee someone is coming down the wire soon.
The acquisition of CSK Auto was a major mistake on Lrly's behalf. They absorbed a massive amount of debt, and currently they are working the CSK people 7 days a week with massive overtime to complete the covversion process. This must have a major impact on moral not to mention the resulting costs associated with further massive spending. There are reports of conflicting communication between top end and middle management to the point that additional payroll is lost due to changes in direction out in the field. When will this company come to the understanding their business practicies does not hold true throughout the country. Time to sit down and think things through and come up with a plan to stop this massive capital loss.
you are an absolute idiot !!! without the CSK buyout Oreillys would be done, giving advance & AZ a giant advantage in the west Orly's will pay back loan in 5 years, meanwhile making 100m a year in net income. FYI: growth companies normally do not hold cash, it is being used to buy or build stores & or DC's disclosure: I am LONG orlys
In your couple hundred comparisons. Did you happen to compare orly to any one else that is less than 24 months inside a merger/conversion which almost doubled them in size overnight? These store conversions as well as expanding the distribution in the converting markets tend to take away from cash flow side of the balance sheet. Unless you know of a way to take on this type of expansion for free.
Country, Have you factored in the fact that the means just not justify the cause? The fact that your company (yes , you work for them) even purchased a failed company and then burned through hundreds of millions of dollars on a very risky plan is initiative of the blatant disregard of every conceivable financial plan on the books. You are burning through an incredible amount of payroll due to overtime and talking to a few people in your stores including field management the moral is declining as fast as your cash reserves and credit line.