Genuine Parts Co (GPC)
Net 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 904,076 | 1,087,895 | 1,212,511 | 1,261,461 | 1,316,524 | 1,251,625 | 1,212,785 | 1,240,820 | 1,182,701 | 1,186,724 | 1,102,951 | 926,918 | 898,790 | 813,995 | 812,941 | 52,073 | -29,102 | -191,388 | -191,432 | 597,370 |
| 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 |
| Net profit margin | 3.85% | 4.67% | 5.24% | 5.46% | 5.70% | 5.44% | 5.30% | 5.50% | 5.35% | 5.55% | 5.38% | 4.71% | 4.76% | 4.44% | 4.55% | 0.31% | -0.17% | -1.10% | -1.06% | 3.11% |
December 31, 2024 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $904,076K ÷ $23,486,570K
= 3.85%
Net profit margin is a key financial ratio that reflects the profitability of a company by measuring the percentage of each dollar of revenue that translates into profit after all expenses have been deducted.
Based on the data provided for Genuine Parts Co, the net profit margin has shown fluctuations over the quarters. The trend indicates that the company experienced negative net profit margins in the middle of 2020 and the end of 2020, which may suggest challenges in generating profits during that period.
However, the net profit margin started improving from March 2021 onwards, with consecutive quarters of positive growth. This improvement suggests that the company's profitability has strengthened over time, reaching a peak of 5.70% by December 2023.
It is essential to note that the net profit margin saw a slight decline in the following quarters but remained above 5% until December 2024, indicating that Genuine Parts Co has been able to maintain a relatively healthy level of profitability during this period.
Overall, the upward trend in the net profit margin signifies effective cost management and revenue generation strategies by the company, showcasing its ability to convert revenue into profits over the analyzed period.