Genuine Parts Co (GPC)
Total asset 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 |
| Total assets | US$ in thousands | 17,968,500 | 16,495,400 | 14,352,100 | 13,440,200 | 14,645,600 |
| Total asset turnover | 1.28 | 1.35 | 1.31 | 1.22 | 1.31 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $23,026,100K ÷ $17,968,500K
= 1.28
The total asset turnover ratio for Genuine Parts Co. has fluctuated over the past five years, ranging from 1.23 to 1.34. This ratio indicates the company's efficiency in generating sales revenue relative to its total assets. A higher total asset turnover ratio typically suggests that the company is utilizing its assets more efficiently to generate sales.
From 2020 to 2021, the total asset turnover ratio increased from 1.23 to 1.31, indicating an improvement in the company's efficiency in utilizing its assets to generate revenue. However, there was a slight decrease in 2022 to 1.34 before dropping to 1.29 in 2023.
Overall, despite some fluctuations, the company has generally maintained a healthy total asset turnover ratio, reflecting its ability to efficiently generate sales revenue relative to its total assets. It is important for Genuine Parts Co. to continue monitoring and managing its asset turnover to ensure sustainable and efficient operations.