Genuine Parts Co (GPC)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 21,317,610 | 21,404,430 | 21,294,000 | 20,932,730 | 20,542,590 | 19,757,420 | 19,035,800 | 18,462,180 | 17,693,500 | 17,284,600 | 16,827,870 | 16,412,810 | 16,584,820 | 17,169,270 | 17,836,440 | 18,352,350 | 18,476,840 | 18,175,430 | 17,865,060 | 17,753,460 |
| Inventory | US$ in thousands | 4,676,690 | 4,482,770 | 4,512,870 | 4,579,590 | 4,441,650 | 4,300,710 | 4,296,190 | 4,211,500 | 3,889,920 | 3,748,420 | 3,679,110 | 3,600,660 | 3,506,270 | 3,419,380 | 3,351,750 | 3,698,930 | 3,443,880 | 3,718,310 | 3,750,780 | 3,684,580 |
| Inventory turnover | 4.56 | 4.77 | 4.72 | 4.57 | 4.62 | 4.59 | 4.43 | 4.38 | 4.55 | 4.61 | 4.57 | 4.56 | 4.73 | 5.02 | 5.32 | 4.96 | 5.37 | 4.89 | 4.76 | 4.82 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $21,317,610K ÷ $4,676,690K
= 4.56
To analyze Genuine Parts Co.'s inventory turnover, we will examine the trend over the past eight quarters as shown in the table. Inventory turnover is a ratio that indicates how many times a company's inventory is sold and replaced over a certain period.
The inventory turnover for Genuine Parts Co. has ranged between 3.03 and 3.30 over the past two years. Generally, a higher inventory turnover signifies that a company is selling goods more quickly and efficiently.
Looking at the trend, we can see that Genuine Parts Co. experienced a slight decrease in inventory turnover in Q4 2023 compared to the previous quarter, Q3 2023. However, the current turnover ratio of 3.16 still falls within the range seen over the past eight quarters.
Over the past two years, Genuine Parts Co. has maintained a relatively consistent inventory turnover, indicating stable inventory management practices. It is essential to monitor changes in inventory turnover to ensure efficient inventory management and identify any potential operational improvements that may be needed.