Genuine Parts Co (GPC)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 21,317,600 | 20,560,000 | 17,693,500 | 16,138,700 | 18,476,800 |
| Payables | US$ in thousands | 5,499,540 | 5,456,550 | 4,804,940 | 4,128,080 | 4,106,160 |
| Payables turnover | 3.88 | 3.77 | 3.68 | 3.91 | 4.50 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $21,317,600K ÷ $5,499,540K
= 3.88
The payables turnover ratio for Genuine Parts Co. has exhibited some variability over the past five years. The ratio indicates how efficiently the company is managing its outstanding payables by measuring how many times during the year the company pays off its suppliers.
In 2023, the payables turnover ratio increased to 2.69 from 2.63 in 2022, showing a slight improvement in the company's ability to manage its payables. However, compared to 2021 and 2020 where the ratios were 2.55 and 2.64 respectively, the company's payables turnover has generally been consistent.
It is worth noting that the payables turnover ratio significantly decreased in 2019 to 3.18, indicating a more efficient management of payables in that year compared to the subsequent years.
Overall, Genuine Parts Co. has demonstrated a relatively stable performance in managing its payables over the past five years, with a slight improvement in 2023. However, further analysis and comparison with industry benchmarks would provide a better understanding of the company's payables management efficiency.