Genuine Parts Co (GPC)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 8,523,620 | 8,290,670 | 7,740,100 | 6,634,140 | 5,654,840 |
| Revenue | US$ in thousands | 23,486,600 | 23,090,600 | 22,096,000 | 18,870,500 | 16,537,400 |
| Gross profit margin | 36.29% | 35.90% | 35.03% | 35.16% | 34.19% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $8,523,620K ÷ $23,486,600K
= 36.29%
Genuine Parts Co has shown a consistent improvement in its gross profit margin over the past five years. Starting at 34.19% on December 31, 2020, the margin has steadily increased to 36.29% by December 31, 2024. This upward trend indicates that the company has been effectively managing its production costs and pricing strategies to enhance profitability. The incremental improvement in the gross profit margin demonstrates Genuine Parts Co's ability to generate more revenue after accounting for the direct costs associated with producing goods or services. Overall, the company's performance in this aspect reflects positive operational efficiency and financial health.