Genuine Parts Co (GPC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,026,100 | 22,227,700 | 18,747,300 | 16,432,400 | 19,255,100 |
| Receivables | US$ in thousands | 2,223,430 | 2,188,870 | 1,797,960 | 1,556,970 | 2,635,160 |
| Receivables turnover | 10.36 | 10.15 | 10.43 | 10.55 | 7.31 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $23,026,100K ÷ $2,223,430K
= 10.36
Genuine Parts Co.'s receivables turnover has shown a relatively stable trend over the past five years, ranging from 7.36 to 10.62. The receivables turnover ratio measures how efficiently the company is collecting on its credit sales. A higher receivables turnover indicates that the company is collecting its accounts receivable more frequently within a given period.
In this case, Genuine Parts Co. has maintained a healthy receivables turnover ratio above 10 for three out of the five years, suggesting that the company has been effective in converting credit sales into cash. This indicates strong credit control and efficient management of accounts receivable. However, it is worth noting a slight decrease in the ratio from 10.62 in 2020 to 10.09 in 2022, followed by a modest increase to 10.39 in 2023.
Overall, Genuine Parts Co.'s receivables turnover ratio reflects a positive trend in terms of managing its accounts receivable efficiently.