Genuine Parts Co (GPC)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.16 | 1.17 | 1.12 | 1.14 | 1.23 | 1.16 | 1.15 | 1.16 | 1.15 | 1.18 | 1.17 | 1.16 | 1.18 | 1.19 | 1.18 | 1.21 | 1.21 | 1.23 | 1.22 | 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 fluctuated over the past few years, ranging from 1.12 to 1.23. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign.
From March 2020 to September 2021, the current ratio remained relatively stable between 1.21 and 1.23, suggesting a strong ability to meet short-term obligations. However, the ratio began to decrease from June 2021 to June 2024, reaching a low of 1.12 in June 2024. This decline may indicate potential challenges in managing current liabilities or a decrease in current assets.
It's worth noting that the current ratio showed some improvement towards the end of 2024, increasing to 1.17 in September 2024 after hitting a low point. Overall, Genuine Parts Co's current ratio trend indicates fluctuations in its short-term liquidity position, which may require further monitoring and analysis to understand the underlying factors contributing to these changes.