Genuine Parts Co (GPC)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 904,076 | 1,316,520 | 1,182,700 | 898,790 | 163,395 |
| Revenue | US$ in thousands | 23,486,600 | 23,090,600 | 22,096,000 | 18,870,500 | 16,537,400 |
| Net profit margin | 3.85% | 5.70% | 5.35% | 4.76% | 0.99% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $904,076K ÷ $23,486,600K
= 3.85%
Based on the data provided, Genuine Parts Co's net profit margin has shown variability over the past five years. In December 31, 2020, the net profit margin was at 0.99%, indicating that for every dollar of revenue generated, the company retained $0.0099 as profit.
There was a significant improvement in the net profit margin over the subsequent years, reaching 4.76% by December 31, 2021, and further increasing to 5.35% by December 31, 2022. This upward trend suggests that the company was able to effectively control its costs and increase its profitability during this period.
By December 31, 2023, Genuine Parts Co's net profit margin saw a slight additional increase to 5.70%, indicating continued efficiency in managing expenses relative to its revenue. However, there was a decrease in the net profit margin to 3.85% by December 31, 2024, which may suggest some challenges impacting the company's profitability that year.
Overall, Genuine Parts Co has shown the ability to improve its net profit margin over the years, with some fluctuations in performance. It is important for the company to continue monitoring its profitability closely and implement strategies to maintain or enhance its margins in the future.