Genuine Parts Co (GPC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,102,010 | 653,463 | 714,701 | 990,166 | 276,992 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 7,827,110 | 7,686,110 | 6,581,580 | 5,894,080 | 6,394,120 |
| Cash ratio | 0.14 | 0.09 | 0.11 | 0.17 | 0.04 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,102,010K
+ $—K)
÷ $7,827,110K
= 0.14
The cash ratio of Genuine Parts Co. has shown some fluctuations over the past five years. In 2023, the cash ratio improved to 0.35 compared to the prior year, indicating that the company has a higher proportion of cash and cash equivalents relative to its current liabilities. This suggests that Genuine Parts Co. has enough liquid assets to cover its short-term obligations.
The cash ratio was relatively consistent in 2021 and 2020, both at 0.31 and 0.35, respectively, indicating a stable liquidity position during those years. However, in 2019, the cash ratio was lower at 0.23, indicating a potential liquidity concern as the company had a lower proportion of cash to meet its short-term obligations.
Overall, Genuine Parts Co.'s cash ratio has generally been maintained at satisfactory levels, with the recent improvement suggesting a stronger liquidity position in 2023. It is advisable for the company to continue monitoring its cash levels to ensure it can meet its short-term obligations effectively.