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.