Genuine Parts Co (GPC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 9,605,850 | 8,816,740 | 7,756,420 | 7,113,760 | 7,938,620 |
| Total current liabilities | US$ in thousands | 7,827,110 | 7,686,110 | 6,581,580 | 5,894,080 | 6,394,120 |
| Current ratio | 1.23 | 1.15 | 1.18 | 1.21 | 1.24 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $9,605,850K ÷ $7,827,110K
= 1.23
The current ratio of Genuine Parts Co. has fluctuated over the past five years, ranging from 1.15 to 1.24. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates better short-term liquidity and financial health.
In 2023, Genuine Parts Co. reported a current ratio of 1.23, showing a slight improvement from the previous year's ratio of 1.15. This suggests that the company's current assets are sufficient to cover its short-term liabilities. However, it is essential to consider the industry averages and compare the current ratio with competitors to gain a more comprehensive understanding of the company's liquidity position.
Although the current ratio has shown some variability, Genuine Parts Co. has generally maintained a current ratio above 1 in recent years, indicating that it has enough current assets to cover its current liabilities. Investors and stakeholders should continue to monitor this ratio to assess the company's ability to meet its short-term financial obligations effectively.