Genuine Parts Co (GPC)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 134.52 | 115.34 | 112.93 | 116.03 | 117.60 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 134.52 | 115.34 | 112.93 | 116.03 | 117.60 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 134.52 + — – —
= 134.52
The cash conversion cycle of Genuine Parts Co has shown some fluctuations over the past five years. As of December 31, 2020, the company had a cash conversion cycle of 117.60 days, which slightly decreased to 116.03 days by December 31, 2021. Subsequently, the cycle further improved to 112.93 days by December 31, 2022.
However, there was a slight increase in the cash conversion cycle to 115.34 days by December 31, 2023, indicating a longer period required to convert inventory and receivables into cash. The cycle then saw a significant jump to 134.52 days by December 31, 2024, suggesting potential inefficiencies in managing working capital during that period.
Overall, Genuine Parts Co should closely monitor its cash conversion cycle to enhance its working capital management efficiency and ensure optimal utilization of resources.