Inventory Turnover › Auto Parts
Auto Parts Retail Inventory Turnover Benchmarks 2026
The three big aftermarket auto-parts retailers (AutoZone, OReilly, Advance) all run 1.3x to 1.6x inventory turnover in their fiscal 2025 10-Ks. This is among the lowest of any retail sector and is intentional. SKU depth, not turnover speed, is the operating moat.
Quick answer: auto parts inventory turnover (fiscal 2025 10-Ks)
AutoZone (AZO)
1.4x in FY25 (ended Aug 30, 2025). $8.97B COGS over ~$6.59B average merchandise inventory.
OReilly (ORLY)
1.6x in FY25 (ended Dec 31, 2025). $8.61B COGS over ~$5.41B average inventory.
Advance (AAP)
1.3x in FY25 (ended Jan 3, 2026). $4.87B COGS over ~$3.63B average inventory.
Turnover = COGS / average inventory (mean of opening and closing balance-sheet inventory). Figures taken from each company's 10-K filings on SEC EDGAR (AutoZone CIK 0000866787, OReilly CIK 0000898173, Advance CIK 0001158449), verified June 2026.
Named retailer 10-K data
| Retailer | Fiscal Year | Turnover | COGS | Avg Inventory |
|---|---|---|---|---|
| AutoZone(AZO) | FY25 (ended Aug 2025) | 1.4x | $8.97B | $6.59B |
| OReilly Automotive(ORLY) | FY25 (ended Dec 2025) | 1.6x | $8.61B | $5.41B |
| Advance Auto Parts(AAP) | FY25 (ended Jan 2026) | 1.3x | $4.87B | $3.63B |
Per-retailer notes
AutoZone (AZO)
1.4x turnoverLargest US aftermarket auto parts retailer. Massive SKU depth (100K+ per mega-hub store) sustains a structurally low turnover; reliability of finding the part is the value proposition, not turnover. Eased from 1.5x in FY24 as merchandise inventory grew faster than COGS on the continued mega-hub rollout.
Source: AutoZone 10-K, fiscal 2025
OReilly Automotive (ORLY)
1.6x turnoverDIY plus DIFM (do-it-for-me commercial) dual model. Pro mix keeps turnover slightly above DIY-only peers; eased from 1.7x in FY24 as the inventory base outgrew COGS.
Advance Auto Parts (AAP)
1.3x turnoverMulti-banner turnaround: divested its Worldpac wholesale business and closed hundreds of stores through 2025, so fiscal 2025 COGS reflects a smaller continuing business. Turnover eased to 1.3x, the lowest of the three majors.
Why intentionally slow turnover makes sense here
An aftermarket auto-parts retailer competes on first-time-in-stock rate. If a customer walks in needing a specific brake rotor for a 2012 Honda Civic and the part is not in stock, they buy from a competitor. Probably forever. The retailers therefore deliberately carry the long tail of SKUs at low velocity:
- A typical hub store carries 100K-200K SKUs. Most turn fewer than 2x per year.
- A small share of fast-movers (oil, filters, wipers) turn 10-20x; they subsidise the slow-moving tail.
- Hub-and-spoke logistics ship slow-movers from regional DCs within hours, reducing the need to stock everything in every store.
The operating economics work because gross margins are 50%+, opex per store is low, and the trade area is captive (drivers who need a part now will not wait two days for Amazon delivery).
Frequently asked questions
What is the inventory turnover of AutoZone, OReilly, and Advance Auto Parts?
In fiscal 2025 AutoZone turned its inventory 1.4x ($8.97B cost of goods sold over roughly $6.59B average merchandise inventory), OReilly Automotive 1.6x ($8.61B over ~$5.41B), and Advance Auto Parts 1.3x ($4.87B over ~$3.63B). All three sit among the lowest turnover rates in retail, calculated from their 10-K filings on SEC EDGAR.
Why is auto parts inventory turnover so low?
It is intentional. Aftermarket parts retailers compete on first-time-in-stock rate, so they deliberately carry a long tail of slow-moving SKUs (a typical hub store holds 100,000 or more parts, most turning fewer than 2x per year). A small share of fast-movers such as oil, filters and wipers turn 10-20x and subsidise the slow tail. SKU depth, not velocity, is the operating moat.
Has auto parts turnover changed recently?
All three majors eased slightly from fiscal 2024 to fiscal 2025: AutoZone from 1.5x to 1.4x and OReilly from 1.7x to 1.6x as inventory bases outgrew COGS, and Advance from 1.5x to 1.3x, partly because its Worldpac divestiture and store closures reshaped the business. The sector band moved from roughly 1.5-1.7x to 1.3-1.6x.
What is a good inventory turnover ratio for an auto parts store?
Big-box aftermarket auto parts retailers run roughly 1.3x to 1.6x annual inventory turnover, far below most retail sectors. Fast-moving consumables (oil, filters, wipers) turn 10-20x, but the deep slow-moving parts assortment drags the blended rate down. A turnover well above 2x in this format usually means the long-tail assortment is too thin to win the first-time-in-stock battle.
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