Genuine Parts Co (GPC)

Liquidity ratios

	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
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
Quick ratio	0.42	0.39	0.39	0.39	0.37	0.38	0.38	0.38	0.38	0.43	0.44	0.46	0.43	0.48	0.47	0.46	0.46	0.50	0.52	0.47
Cash ratio	0.14	0.08	0.07	0.08	0.09	0.08	0.07	0.08	0.11	0.14	0.15	0.18	0.17	0.15	0.16	0.05	0.04	0.07	0.09	0.05

Genuine Parts Co.'s liquidity ratios provide insight into the company's ability to meet its short-term obligations. The current ratio, which measures the firm's ability to cover short-term liabilities with current assets, has shown consistency around 1.15-1.23 over the quarters. This indicates that the company has generally been able to meet its short-term obligations with its current assets.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has ranged from 0.57 to 0.63. This implies that Genuine Parts Co. may have more difficulty meeting its immediate obligations without relying on selling inventory.

The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has fluctuated between 0.26 to 0.35. This suggests that the company has a varying ability to cover its short-term liabilities solely with its available cash resources.

Overall, while the current ratio indicates a relatively stable position in terms of liquidity, the quick ratio and cash ratio show some variability. Genuine Parts Co. may need to closely monitor its cash position and manage its short-term obligations effectively to ensure continued liquidity.

Additional liquidity measure

		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
Cash conversion cycle	days	21.16	20.78	22.55	19.79	17.91	15.01	18.32	19.88	15.99	15.12	16.16	19.68	19.88	29.02	29.76	45.42	37.90	42.60	48.46	45.68

The cash conversion cycle for Genuine Parts Co. has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 14.85 days, which increased from the previous quarter's 13.20 days. This indicates that Genuine Parts Co. took longer to convert its investments in inventory into cash during this period.

Comparing Q4 2023 to Q1 2023, there was a notable increase in the cash conversion cycle from 11.79 days to 14.85 days. This suggests that the company may have experienced delays in collecting receivables or managing inventory efficiently during this quarter.

Looking at the trend over the past year, the cash conversion cycle has generally been increasing, with occasional fluctuations. The cycle was relatively low in Q3 2022 at 5.55 days but has been trending upwards since then. Q4 2022 showed a significant increase to 10.35 days, which indicates a longer time to convert sales back into cash.

Overall, Genuine Parts Co. should focus on improving their processes related to inventory management, accounts receivable collection, and payment of accounts payable to optimize their cash conversion cycle and strengthen their cash flow position.