Genuine Parts Co (GPC)
Working capital turnover
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 23,486,570 | 23,302,280 | 23,156,680 | 23,109,120 | 23,090,610 | 23,028,380 | 22,879,050 | 22,566,450 | 22,095,970 | 21,375,530 | 20,519,110 | 19,700,440 | 18,870,510 | 18,318,890 | 17,870,130 | 16,909,620 | 17,004,440 | 17,459,040 | 18,103,970 | 19,215,000 |
Total current assets | US$ in thousands | 9,852,580 | 10,709,500 | 9,796,700 | 9,806,300 | 9,605,850 | 9,029,870 | 9,083,710 | 9,184,430 | 8,816,740 | 8,823,200 | 8,526,270 | 8,427,430 | 7,756,420 | 7,782,180 | 7,721,590 | 7,678,160 | 7,113,760 | 7,375,280 | 7,291,330 | 7,993,050 |
Total current liabilities | US$ in thousands | 8,525,380 | 9,123,410 | 8,766,410 | 8,639,490 | 7,827,110 | 7,800,360 | 7,899,790 | 7,917,520 | 7,686,110 | 7,495,120 | 7,293,860 | 7,249,530 | 6,581,580 | 6,537,320 | 6,521,200 | 6,336,350 | 5,894,080 | 5,976,700 | 5,968,730 | 6,581,220 |
Working capital turnover | 17.70 | 14.69 | 22.48 | 19.81 | 12.98 | 18.73 | 19.32 | 17.81 | 19.54 | 16.10 | 16.65 | 16.73 | 16.06 | 14.72 | 14.89 | 12.60 | 13.94 | 12.48 | 13.69 | 13.61 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $23,486,570K ÷ ($9,852,580K – $8,525,380K)
= 17.70
Genuine Parts Co's working capital turnover has displayed fluctuating trends over the analyzed periods, reflecting the company's efficiency in managing its working capital. The working capital turnover ratio indicates how efficiently a company utilizes its working capital to generate sales revenue.
From March 31, 2020, to December 31, 2024, the working capital turnover ratio ranged between 12.48 and 22.48. The highest working capital turnover ratio was observed on June 30, 2024, at 22.48, while the lowest ratio was noted on December 31, 2020, at 12.98. The overall trend shows some variability in the efficiency of Genuine Parts Co in utilizing its working capital effectively throughout the analyzed periods.
The general increasing trend in the later periods, particularly from March 31, 2022, to June 30, 2024, suggests an improvement in managing working capital to support sales activities. The peak ratio on June 30, 2024, may indicate enhanced working capital management efficiency during that period.
Overall, Genuine Parts Co's working capital turnover demonstrates fluctuations over time, with periods of both higher and lower efficiency in utilizing working capital to generate sales revenue. It is essential for the company to continue monitoring and optimizing its working capital management strategies to sustain efficient operations and enhance financial performance.