Genuine Parts Co (GPC)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	23,026,140	23,066,460	22,914,730	22,701,150	22,227,680	21,420,010	20,566,850	19,649,510	18,820,380	18,268,760	17,809,170	16,839,300	16,932,210	16,960,510	17,604,750	18,717,950	18,865,300	19,161,370	18,870,670	18,755,300
Property, plant and equipment	US$ in thousands	1,616,780	1,513,820	1,441,760	1,373,540	1,326,010	1,241,570	1,236,860	1,239,050	1,234,400	1,107,370	1,175,950	1,165,240	1,162,040	1,141,420	1,133,990	1,180,200	1,173,690	1,118,910	1,089,760	1,044,790
Fixed asset turnover		14.24	15.24	15.89	16.53	16.76	17.25	16.63	15.86	15.25	16.50	15.14	14.45	14.57	14.86	15.52	15.86	16.07	17.13	17.32	17.95

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $23,026,140K ÷ $1,616,780K
= 14.24

Genuine Parts Co. has shown a consistent trend of improving its fixed asset turnover in recent quarters. The fixed asset turnover ratio, which measures the efficiency of the company in generating sales from its fixed assets, has been on an upward trajectory, increasing from 15.90 in Q1 2022 to 16.43 in Q1 2023. This indicates that the company is effectively utilizing its fixed assets to generate revenue.

The highest fixed asset turnover ratio of 17.22 was recorded in Q3 2022, showing peak efficiency in that period. Although there was a slight dip in Q4 2022 to 16.66, the ratio quickly rebounded in subsequent quarters, reaching 15.87 in Q2 2023 and 15.21 in Q3 2023.

The overall trend suggests that Genuine Parts Co. has been successful in maximizing the productivity of its fixed assets over the analyzed period. This efficiency can be attributed to effective asset management strategies and operational improvements within the company.