Genuine Parts Co (GPC)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 9,852,580 | 9,605,850 | 8,816,740 | 7,756,420 | 7,113,760 |
| Total current liabilities | US$ in thousands | 8,525,380 | 7,827,110 | 7,686,110 | 6,581,580 | 5,894,080 |
| Current ratio | 1.16 | 1.23 | 1.15 | 1.18 | 1.21 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $9,852,580K ÷ $8,525,380K
= 1.16
The current ratio of Genuine Parts Co has exhibited a slight downward trend over the past five years, decreasing from 1.21 on December 31, 2020, to 1.16 on December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with its current assets has slightly weakened over the period. While the current ratio remains above 1, suggesting that Genuine Parts Co has sufficient current assets to meet its short-term obligations, the declining trend warrants further scrutiny to understand the factors contributing to this decrease. Potential actions may need to be taken to ensure the company maintains a healthy liquidity position in the future.