Genuine Parts Co (GPC)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 479,991 | 1,078,120 | 555,277 | 1,049,590 | 1,102,010 | 654,637 | 530,105 | 651,183 | 653,463 | 629,198 | 519,131 | 610,776 | 714,701 | 919,097 | 987,389 | 1,117,990 | 990,166 | 900,123 | 983,759 | 354,469 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.06 | 0.12 | 0.06 | 0.12 | 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 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates potential liquidity issues, as the company may struggle to pay its current liabilities using only its quick assets (assets that can be converted to cash quickly).
Looking at the quick ratio trend of Genuine Parts Co, we observe fluctuations over the past few years. The quick ratio ranged from a low of 0.05 on March 31, 2020, to a high of 0.18 on March 31, 2021. This variability suggests changes in the company's liquidity position during the period.
There are periods where the quick ratio improved, such as the increase from 0.05 on March 31, 2020, to 0.18 on March 31, 2021, indicating better short-term liquidity. Conversely, there are instances where the quick ratio declined, such as the decrease from 0.18 on March 31, 2021, to 0.06 on June 30, 2024, implying a potential strain on immediate liquidity.
The quick ratio of Genuine Parts Co seems to have experienced fluctuations, with values generally hovering around or below 1. This may suggest that the company relies more on inventory and receivables to meet its short-term obligations rather than cash and marketable securities.
It is essential for stakeholders to monitor Genuine Parts Co's quick ratio closely to ensure the company can cover its short-term liabilities efficiently. Understanding the company's ability to convert its liquid assets into cash quickly is crucial for assessing its overall financial health and operational efficiency.