Question
Based on the calculations I made for the following companies, which ratios/numbers would I use to determine which business would be the better investment? The
Based on the calculations I made for the following companies, which ratios/numbers would I use to determine which business would be the better investment?
The companies are O'Reilly Automotive vs Autozone. The top grid box are what I calculated from the two companies income statements and balance sheets below.
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| OReilly Automotive | Autozone |
1 | Gross Profit, $ | $6,085,692,000 | $6,770,753,000 |
2 | Earnings Per Share (EPS), $ | $24.65 | $ 74.10 |
3 | Return on Sales, % | 15.10% | 0.14% |
4 | Return on Equity, % | 12.50% | -1.97% |
5 | Current Ratio | 0.86 | 1.08 |
6 | Debt to Equity Ratio, % | 81.68% | -17.43% |
| Dollar General (DG) | Dollar Tree (DLTR) | O'Reilly Automotive (ORLY) | AutoZone (AZO) |
Income Statement* | ||||
Total Revenue | $33,746,839,000 | $25,509,300,000 | $11,604,493,000 | $12,631,967,000 |
Cost of Revenue | $23,027,977,000 | $17,721,000,000 | $5,518,801,000 | $5,861,214,000 |
Net Income | $2,655,050,000 | $1,341,900,000 | $1,752,302,000 | $1,732,972,000 |
| ||||
Balance Sheet** | ||||
Current Assets | $6,914,219,000 | $5,050,800,000 | $4,499,787,000 | $6,811,872,000 |
Total Assets | $25,862,624,000 | $20,696,000,000 | $11,596,642,000 | $14,423,872,000 |
Current Liabilities | $5,710,783,000 | $3,730,300,000 | $5,262,417,000 | $6,283,091,000 |
Total Liabilities | $19,201,386,000 | $13,410,700,000 | $11,456,384,000 | $15,301,849,000 |
Stockholders' Equity | $6,661,238,000 | $7,285,300,000 | $140,258,000 | -$877,977,000 |
Number of Shares | 240,785,000 | 233,383,000 | 71,123,000 | 23,376,000 |
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* Financials from Yahoo Finance, retrieved 08/2021; Income Statement: 1/31/2021 ** Balance Sheet: 1/31/21 (DG, DLTR) 8/31/20 (AZO), 12/31/2020 (ORLY). | ||||
Retailers ranked #16, #19 & #36, #42 from Top 100 Retailers 2021 List, National Retail Federation |
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