Genuine Parts Co (GPC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.01% | 34.82% | 35.39% | 34.41% | 30.43% |
| Operating profit margin | 7.59% | 7.26% | 6.20% | 2.53% | 4.69% |
| Pretax margin | 7.57% | 7.07% | 6.40% | 1.14% | 4.33% |
| Net profit margin | 5.72% | 5.32% | 4.79% | -0.18% | 3.23% |
Genuine Parts Co. has shown a consistent performance in terms of profitability ratios over the past five years. The company's gross profit margin has steadily increased from 32.57% in 2019 to 35.90% in 2023, indicating an improvement in its ability to generate profit from its sales after accounting for the cost of goods sold.
The operating profit margin also shows a positive trend, increasing from 5.66% in 2019 to 7.57% in 2023. This indicates that the company has effectively managed its operating expenses in relation to its revenue, leading to higher profitability at the operating level.
Similarly, the pretax margin has shown a steady growth from 4.28% in 2019 to 7.55% in 2023, reflecting an improvement in the company's ability to generate profit before accounting for taxes. This suggests that Genuine Parts Co. has been successful in increasing its profitability at the pretax level.
The net profit margin, which represents the percentage of revenue that translates into net income, has also seen a positive trend, improving from 3.20% in 2019 to 5.70% in 2023. Despite a negative net profit margin in 2020, the company has managed to turn around and achieve a consistent increase in profitability over the years.
Overall, Genuine Parts Co. has demonstrated a strong trend of improving profitability ratios, indicating effective cost management and revenue generation strategies that have led to enhanced profitability levels over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.72% | 9.79% | 8.10% | 3.09% | 6.16% |
| Return on assets (ROA) | 7.33% | 7.17% | 6.26% | -0.22% | 4.24% |
| Return on total capital | 22.72% | 23.98% | 21.40% | 4.86% | 14.29% |
| Return on equity (ROE) | 29.91% | 31.20% | 25.75% | -0.91% | 16.90% |
Genuine Parts Co. has shown overall improvement in profitability ratios over the past five years. The Operating Return on Assets (Operating ROA) has been consistent, ranging from 7.23% to 9.79%, indicating the company's ability to generate operating income from its assets.
The Return on Assets (ROA) has also shown improvement, with positive values achieved in the last four years. This ratio demonstrates Genuine Parts Co.'s efficiency in generating profits from its total assets, with a notable turnaround from a negative value in 2020 to positive figures in subsequent years.
The Return on Total Capital has consistently increased from 15.45% in 2019 to 21.03% in 2023, indicating a more efficient utilization of both debt and equity capital to generate profits. This indicates the company's ability to generate returns for both debt and equity providers.
The Return on Equity (ROE) has shown a significant improvement, with a peak of 31.20% in 2022, indicating the company's ability to generate strong returns for its shareholders. The upward trend in ROE reflects Genuine Parts Co.'s ability to enhance shareholder value by efficiently utilizing equity investments to generate profits.
Overall, Genuine Parts Co. has demonstrated consistent improvement in profitability ratios, reflecting effective management of assets, capital, and equity to generate returns for its stakeholders.