Genuine Parts Co (GPC)
Working capital 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 current assets | US$ in thousands | 9,852,580 | 9,605,850 | 8,816,740 | 7,756,420 | 7,113,760 |
| Total current liabilities | US$ in thousands | 8,525,380 | 7,827,110 | 7,686,110 | 6,581,580 | 5,894,080 |
| Working capital turnover | 17.70 | 12.98 | 19.54 | 16.06 | 13.56 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $23,486,600K ÷ ($9,852,580K – $8,525,380K)
= 17.70
Genuine Parts Co’s working capital turnover has shown varying trends over the past five years. In December 2020, the working capital turnover was 13.56, indicating that the company generated $13.56 in net sales for every dollar of working capital.
By December 2021, the working capital turnover improved to 16.06, reflecting an increase in efficiency in utilizing working capital to generate sales. The trend continued positively in December 2022, with a further increase to 19.54, suggesting that the company efficiently turned its working capital into revenue.
However, in December 2023, there was a decrease in the working capital turnover to 12.98, indicating a potential slowdown in the company's ability to generate sales relative to its working capital. Despite this decline, the metric rebounded in December 2024 to 17.70, signaling an improvement in the efficiency of working capital utilization compared to the previous year.
Overall, Genuine Parts Co has shown fluctuating but generally positive trends in its working capital turnover, with a notable improvement in efficiency observed in 2022. It is important for the company to continue monitoring and managing its working capital effectively to sustain and enhance its operational performance in the future.