Genuine Parts Co (GPC)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 15,062,170 | 15,003,390 | 14,946,990 | 14,845,780 | 14,888,520 | 14,797,300 | 14,777,550 | 14,638,910 | 14,355,880 | 13,915,680 | 13,328,150 | 12,781,160 | 12,236,370 | 11,930,090 | 11,664,030 | 11,102,140 | 11,236,980 | 11,554,600 | 12,103,180 | 12,906,120 |
| Inventory | US$ in thousands | 5,514,430 | 5,527,030 | 5,103,640 | 4,736,110 | 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 |
| Inventory turnover | 2.73 | 2.71 | 2.93 | 3.13 | 3.18 | 3.30 | 3.27 | 3.20 | 3.23 | 3.24 | 3.10 | 3.03 | 3.15 | 3.18 | 3.17 | 3.08 | 3.20 | 3.38 | 3.61 | 3.49 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $15,062,170K ÷ $5,514,430K
= 2.73
Genuine Parts Co's inventory turnover has exhibited fluctuating trends over the past few years. The data shows that the inventory turnover ratios have ranged from a low of 2.71 on December 31, 2024, to a high of 3.61 on June 30, 2020. Generally, an increasing trend in inventory turnover is considered positive as it indicates that the company is selling its inventory more efficiently.
However, it is important to note that the inventory turnover ratio slightly decreased towards the end of the period, reaching 2.73 on December 31, 2024, after experiencing a peak of 3.27 on June 30, 2023. A declining inventory turnover ratio could suggest issues such as excess inventory levels, slow-moving goods, or decreased demand for the company's products.
Overall, Genuine Parts Co's inventory turnover ratios have shown some fluctuations over the period, indicating the need for further analysis to understand the underlying reasons for these variations and potential impacts on the company's operations and financial performance.