Genuine Parts Co (GPC)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 23,486,570 | 23,302,280 | 23,156,680 | 23,109,120 | 23,090,610 | 23,028,380 | 22,879,050 | 22,566,450 | 22,095,970 | 21,375,530 | 20,519,110 | 19,700,440 | 18,870,510 | 18,318,890 | 17,870,130 | 16,909,620 | 17,004,440 | 17,459,040 | 18,103,970 | 19,215,000 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 2,711,070 | 1,441,760 | 1,373,540 | 2,430,690 | 1,241,570 | 1,236,860 | 1,239,050 | 1,234,400 | 2,148,100 | 2,235,020 | 1,165,240 | 1,162,040 | 1,141,420 | 1,133,990 | 1,180,200 |
| Fixed asset turnover | — | — | — | — | — | 8.49 | 15.87 | 16.43 | 9.09 | 17.22 | 16.59 | 15.90 | 15.29 | 8.53 | 8.00 | 14.51 | 14.63 | 15.30 | 15.96 | 16.28 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $23,486,570K ÷ $—K
= —
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its investment in fixed assets, such as property, plant, and equipment. It indicates how efficiently a company is utilizing its fixed assets to generate revenue.
In the case of Genuine Parts Co, the fixed asset turnover ratio has shown some fluctuation over the years. From March 31, 2020, to September 30, 2022, the trend was relatively stable, with the ratio ranging between 14.51 and 17.22, indicating that the company was effectively utilizing its fixed assets to generate revenue during this period.
However, there was a significant drop in the fixed asset turnover ratio in the second half of 2022, with the ratio falling to 9.09 by December 31, 2022. This sudden decrease suggests a potential decrease in the company's ability to generate sales from its fixed assets efficiently during that period.
Subsequently, there were fluctuations in the fixed asset turnover ratio in the following quarters, with ratios ranging from 8.49 to 16.43. This volatility may indicate changes in the company's operational efficiency or business strategy impacting its ability to maximize revenue from its fixed assets.
It is important for Genuine Parts Co to closely monitor its fixed asset turnover ratio and investigate the reasons behind the fluctuations to ensure optimal utilization of its fixed assets and sustainable revenue generation. Additional analysis and comparison with industry peers may provide further insights into the company's performance in this aspect.