Genuine Parts Co (GPC)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 8,290,670 | 7,740,100 | 6,634,140 | 5,654,840 | 5,859,680 |
| Revenue | US$ in thousands | 23,026,100 | 22,227,700 | 18,747,300 | 16,432,400 | 19,255,100 |
| Gross profit margin | 36.01% | 34.82% | 35.39% | 34.41% | 30.43% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $8,290,670K ÷ $23,026,100K
= 36.01%
Genuine Parts Co.'s gross profit margin has displayed a positive trend over the past five years, consistently improving from 32.57% in 2019 to 35.90% in 2023. This indicates that the company has become more efficient in generating gross profit from its sales revenue.
The gradual increase in gross profit margin suggests that Genuine Parts Co. has been effectively managing its production costs and pricing strategies to enhance profitability. This improvement may stem from factors such as better cost control, economies of scale, or pricing adjustments that have positively impacted the company's bottom line.
The consistent growth in gross profit margin indicates a healthy operational performance and may signal strong competitive positioning within the industry. It also reflects positively on the company's ability to effectively manage its cost structure and maintain pricing power in the market.
Overall, Genuine Parts Co.'s increasing gross profit margin trend demonstrates sound financial management and operational efficiency, which could contribute to sustained profitability and shareholder value in the long term.