Genuine Parts Co (GPC)

Short-term

Turnover ratios

Inventory Turnover:
- Genuine Parts Co's inventory turnover has shown a generally increasing trend from 3.10 in 2020 to 3.23 in 2022, indicating that the company is efficiently managing its inventory by selling and replenishing stock more frequently.
- However, there was a slight dip in 2024 to 2.71, which may suggest potential inefficiencies in managing inventory levels or a change in sales patterns that impacted turnover.

Receivables Turnover:
- No data is available for receivables turnover for Genuine Parts Co for the years 2020 to 2024. This may indicate that the company does not provide credit sales or that the data is not disclosed in the available information.

Payables Turnover:
- Similarly, there is no data provided for payables turnover for Genuine Parts Co for the years 2020 to 2024. This makes it difficult to assess how effectively the company is managing its trade payables.

Working Capital Turnover:
- Genuine Parts Co's working capital turnover has shown fluctuations over the years, with a notable increase from 13.56 in 2020 to 19.54 in 2022, suggesting the company is efficiently utilizing its working capital to generate revenue.
- However, there was a decrease in 2023 to 12.98, before increasing to 17.70 in 2024. This pattern could indicate changes in the company's operational efficiency or business strategy during these years.

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Average number of days

Based on the provided data for Genuine Parts Co, the activity ratios can provide insights into the company's efficiency in managing its inventory, collecting receivables, and paying its payables. Let's analyze the data for each metric:

1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand decreased from 117.60 days in 2020 to 112.93 days in 2022, indicating that Genuine Parts Co was more efficient in managing its inventory during this period.
- However, there was an increase in DOH to 134.52 days by the end of 2024, suggesting a potential inefficiency in inventory management or an increase in inventory levels that may need attention.

2. Days of Sales Outstanding (DSO):
- The data does not provide specific values for Days of Sales Outstanding (DSO), indicating that the company's accounts receivable turnover was not disclosed in the given information.
- Without this data, it is challenging to assess how effectively Genuine Parts Co is collecting its accounts receivable within a specific time frame.

3. Number of Days of Payables:
- Similarly, the data does not include the Number of Days of Payables, making it challenging to evaluate the company's payment practices and its ability to extend payables effectively.

Overall, while the information on DOH suggests improvements in inventory management efficiency over the years analyzed, the lack of data on DSO and payables hinders a comprehensive assessment of Genuine Parts Co's activity ratios related to accounts receivable and accounts payable management. It's essential for a more thorough analysis to include additional financial metrics and context to understand the company's operational effectiveness fully.

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Long-term

Genuine Parts Co's Fixed Asset Turnover ratio has shown a positive trend from 2020 to 2021, increasing from 14.23 to 15.29. This indicates that the company is generating more sales revenue in relation to its investment in fixed assets during this period. However, there was a notable decrease in the Fixed Asset Turnover ratio in 2022, dropping to 9.09. This could suggest that the company's efficiency in utilizing its fixed assets to generate sales has declined.

Looking at the Total Asset Turnover ratio, Genuine Parts Co's performance was relatively stable from 2020 to 2023, ranging from 1.23 to 1.34. This ratio measures the company's ability to generate sales revenue in relation to its total assets. However, there was a slight decrease in 2024, with the ratio dropping to 1.22. This may indicate a slight reduction in the efficiency of utilizing its total assets to generate sales revenue.

Overall, Genuine Parts Co's long-term activity ratios suggest that the company was effectively utilizing its assets to generate sales revenue, with some fluctuations observed over the years. Further analysis and comparison with industry peers may provide additional insights into the company's performance and competitiveness in the market.