Genuine Parts Co (GPC)
Current ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 7,938,620 | 8,058,670 | 8,184,670 | 7,886,390 |
| Total current liabilities | US$ in thousands | 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 | 6,394,120 | 6,372,810 | 6,498,230 | 6,545,330 |
| Current ratio | 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 | 1.24 | 1.26 | 1.26 | 1.20 |
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 been relatively stable over the past eight quarters, ranging from 1.15 to 1.23. The current ratio measures the company's ability to meet its short-term obligations with its current assets.
Based on the data provided, Genuine Parts Co. appears to have a solid 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, suggesting that it can comfortably meet its short-term financial obligations.
Although there was slight fluctuation in the current ratio over the quarters, the overall trend indicates a healthy liquidity position for Genuine Parts Co. Investors and creditors would generally view a consistent current ratio above 1 as a positive signal of the company's financial health and ability to manage its short-term obligations effectively.