Genuine Parts Co (GPC)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,486,600 | 23,090,600 | 22,096,000 | 18,870,500 | 16,537,400 |
| Total assets | US$ in thousands | 19,282,700 | 17,968,500 | 16,495,400 | 14,352,100 | 13,440,200 |
| Total asset turnover | 1.22 | 1.29 | 1.34 | 1.31 | 1.23 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $23,486,600K ÷ $19,282,700K
= 1.22
Based on the data provided, Genuine Parts Co's total asset turnover has exhibited some fluctuations over the past five years. The total asset turnover ratio measures the efficiency of the company in generating sales revenue from its total assets.
In 2020, the total asset turnover ratio was 1.23, indicating that for each dollar of total assets, the company generated $1.23 in sales. Over the following years, the ratio showed an increasing trend, reaching 1.31 in 2021, 1.34 in 2022, before decreasing slightly to 1.29 in 2023, and further dropping to 1.22 in 2024.
The general upward trend in the total asset turnover ratio from 2020 to 2022 suggests that Genuine Parts Co became more efficient in utilizing its assets to generate sales during this period. However, the subsequent decline in the ratio in 2023 and 2024 may indicate a potential decrease in asset efficiency or a change in the company's business dynamics.
Overall, Genuine Parts Co's total asset turnover ratio has shown variability over the past five years, reflecting fluctuations in the company's asset utilization efficiency and sales generation capabilities. Further analysis of the company's operational performance and strategic decisions would be necessary to fully assess the implications of these changes in the total asset turnover ratio.