Genuine Parts Co (GPC)

Working capital 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
Total current assets	US$ in thousands	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	7,938,620	8,058,670	8,184,670	7,886,390
Total current liabilities	US$ in thousands	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	6,394,120	6,372,810	6,498,230	6,545,330
Working capital turnover		12.95	18.76	19.35	17.92	19.66	16.13	16.69	16.68	16.02	14.68	14.84	12.55	13.88	12.13	13.31	13.26	12.21	11.37	11.19	13.99

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $23,026,140K ÷ ($9,605,850K – $7,827,110K)
= 12.95

The working capital turnover ratio for Genuine Parts Co. has exhibited fluctuations over the past eight quarters. In Q4 2023, the ratio stood at 12.98, indicating that the company generated approximately $12.98 in revenue for every dollar of working capital invested during that period. This represented a decrease from the previous quarter's figure of 18.73.

The peak performance in terms of working capital turnover was observed in Q2 2023, where the ratio reached 19.32. This suggests that the company efficiently utilized its working capital to generate revenue during that quarter.

While there have been fluctuations in the ratio, Genuine Parts Co. generally maintained a relatively high working capital turnover throughout the analyzed period. This indicates that the company effectively managed its working capital to support its operations and generate revenue.

Overall, a high working capital turnover ratio signifies efficient utilization of resources and effective management of working capital to drive revenue generation for Genuine Parts Co.