Genuine Parts Co (GPC)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,747,050 | 1,614,200 | 1,162,920 | 414,943 | 902,757 |
| Revenue | US$ in thousands | 23,026,100 | 22,227,700 | 18,747,300 | 16,432,400 | 19,255,100 |
| Operating profit margin | 7.59% | 7.26% | 6.20% | 2.53% | 4.69% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,747,050K ÷ $23,026,100K
= 7.59%
Genuine Parts Co.'s operating profit margin has displayed a generally positive trend over the past five years, indicating improving operational efficiency and profitability. The company's operating profit margin increased from 5.66% in 2019 to 7.57% in 2023, reflecting consistent growth in the proportion of operating income generated from each dollar of revenue. This upward trajectory suggests effective cost management, pricing strategies, and revenue growth initiatives. Overall, Genuine Parts Co. has been able to enhance its operational performance and generate higher profits relative to its revenue base over the period under review.