Genuine Parts Co (GPC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 14,963,000 | 14,799,900 | 14,355,900 | 12,236,400 | 10,882,600 |
| Inventory | US$ in thousands | 5,514,430 | 4,676,690 | 4,441,650 | 3,889,920 | 3,506,270 |
| Inventory turnover | 2.71 | 3.16 | 3.23 | 3.15 | 3.10 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $14,963,000K ÷ $5,514,430K
= 2.71
Genuine Parts Co's inventory turnover has shown a fluctuating trend over the past five years. From December 31, 2020, to December 31, 2022, there was a steady increase in inventory turnover, indicating that the company was selling its inventory more frequently during this period. However, by December 31, 2024, the inventory turnover decreased significantly to 2.71, suggesting a decrease in the frequency of inventory turnover.
Overall, Genuine Parts Co's inventory turnover has shown some variability, with the company generally turning over its inventory between 3 to 3.23 times a year. It would be important to further investigate the reasons behind the fluctuation in inventory turnover to assess its impact on the company's operational efficiency and financial performance.