Genuine Parts Co (GPC)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 8,424,420 | 8,298,910 | 8,209,710 | 8,263,350 | 8,202,090 | 8,231,070 | 8,101,500 | 7,927,560 | 7,740,110 | 7,459,870 | 7,190,970 | 6,919,270 | 6,634,140 | 6,388,800 | 6,206,100 | 5,807,490 | 5,767,460 | 5,904,440 | 6,000,800 | 6,308,890 |
| Revenue (ttm) | US$ in thousands | 23,486,570 | 23,302,280 | 23,156,680 | 23,109,120 | 23,090,610 | 23,028,380 | 22,879,050 | 22,566,450 | 22,095,970 | 21,375,530 | 20,519,110 | 19,700,440 | 18,870,510 | 18,318,890 | 17,870,130 | 16,909,620 | 17,004,440 | 17,459,040 | 18,103,970 | 19,215,000 |
| Gross profit margin | 35.87% | 35.61% | 35.45% | 35.76% | 35.52% | 35.74% | 35.41% | 35.13% | 35.03% | 34.90% | 35.05% | 35.12% | 35.16% | 34.88% | 34.73% | 34.34% | 33.92% | 33.82% | 33.15% | 32.83% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $8,424,420K ÷ $23,486,570K
= 35.87%
Genuine Parts Co has shown a steady increase in its gross profit margin over the analyzed periods, indicating strong profitability in its core operations. The gross profit margin started at 32.83% on March 31, 2020, and progressively improved to reach 35.87% by December 31, 2024. This demonstrates the company's ability to effectively manage its production costs and generate higher profits from its sales.
The consistent upward trend in the gross profit margin reflects Genuine Parts Co's efficiency in controlling direct expenses related to the production of goods or provision of services. Investors and stakeholders generally view a rising gross profit margin positively as it signifies better operational efficiency and potentially more sustainable profitability.
However, it's important to note that a stable or increasing gross profit margin should be considered alongside other financial metrics and industry benchmarks for a comprehensive assessment of the company's overall financial health and performance.