Genuine Parts Co (GPC)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 23,026,140 | 23,066,460 | 22,914,730 | 22,701,150 | 22,227,680 | 21,420,010 | 20,566,850 | 19,649,510 | 18,820,380 | 18,268,760 | 17,809,170 | 16,839,300 | 16,932,210 | 16,960,510 | 17,604,750 | 18,717,950 | 18,865,300 | 19,161,370 | 18,870,670 | 18,755,300 |
| Receivables | US$ in thousands | 2,223,430 | 2,394,790 | 2,554,170 | 2,420,850 | 2,188,870 | 2,215,030 | 2,235,450 | 2,137,810 | 1,797,960 | 1,888,250 | 1,899,980 | 1,809,640 | 1,556,970 | 1,952,220 | 1,823,360 | 2,705,190 | 2,635,160 | 2,739,970 | 2,836,880 | 2,741,920 |
| Receivables turnover | 10.36 | 9.63 | 8.97 | 9.38 | 10.15 | 9.67 | 9.20 | 9.19 | 10.47 | 9.67 | 9.37 | 9.31 | 10.88 | 8.69 | 9.66 | 6.92 | 7.16 | 6.99 | 6.65 | 6.84 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $23,026,140K ÷ $2,223,430K
= 10.36
The receivables turnover ratio measures how effectively Genuine Parts Co. is collecting outstanding receivables during a specific period. A higher turnover ratio indicates that the company is efficient in converting its receivables into cash.
Over the past eight quarters, Genuine Parts Co.'s receivables turnover has shown fluctuation but generally remained within a consistent range. There was a slight increase in Q4 2023 compared to the previous quarter, indicating improvement in the company's ability to collect payments from customers.
The average receivables turnover for the given periods is approximately 9.70, suggesting that Genuine Parts Co. turns over its receivables almost 9.7 times annually. This indicates a relatively efficient collection process, although there may be room for further improvement.
It is important to note that a high receivables turnover ratio may also imply strict credit policies, which could potentially deter customers. Therefore, Genuine Parts Co. should strike a balance between efficient collections and maintaining good customer relations to ensure sustainable growth and profitability.