Genuine Parts Co (GPC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 479,991 | 1,102,010 | 653,463 | 714,701 | 990,166 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 8,525,380 | 7,827,110 | 7,686,110 | 6,581,580 | 5,894,080 |
| Quick ratio | 0.06 | 0.14 | 0.09 | 0.11 | 0.17 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($479,991K
+ $—K
+ $—K)
÷ $8,525,380K
= 0.06
The quick ratio of Genuine Parts Co has exhibited a declining trend over the past five years, decreasing from 0.17 as of December 31, 2020, to 0.06 as of December 31, 2024. This ratio indicates the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1.0 suggests potential difficulty in covering short-term liabilities with readily available assets. The decreasing trend in the quick ratio raises concerns about the company's liquidity position and its ability to cover immediate financial obligations. It is important for Genuine Parts Co to closely monitor and manage its liquidity position to ensure it can meet its short-term financial commitments.