Genuine Parts Co (GPC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.71 | 3.16 | 3.23 | 3.15 | 3.10 | |
| DOH | days | 134.52 | 115.34 | 112.93 | 116.03 | 117.60 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.71
= 134.52
The days of inventory on hand (DOH) for Genuine Parts Co have shown a slight decrease over the past four years, moving from 117.60 days as of December 31, 2020, to 116.03 days as of December 31, 2021, further declining to 112.93 days as of December 31, 2022. However, there was a slight increase to 115.34 days as of December 31, 2023, and a more significant increase to 134.52 days as of December 31, 2024.
The overall trend indicates that Genuine Parts Co took fewer days to sell its inventory in 2022 compared to 2020 and 2021, which could imply more efficient inventory management. However, the increase in DOH in 2023 and 2024 might suggest potential challenges in inventory turnover efficiency or changes in the company's inventory management practices.
It would be essential for Genuine Parts Co to further analyze the factors contributing to the increase in DOH in the last two years to optimize inventory levels and maintain a healthy balance between inventory turnover and liquidity.