Genuine Parts Co (GPC)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,229,220 | 1,747,050 | 1,646,490 | 1,262,500 | 1,029,820 |
| Revenue | US$ in thousands | 23,486,600 | 23,090,600 | 22,096,000 | 18,870,500 | 16,537,400 |
| Operating profit margin | 5.23% | 7.57% | 7.45% | 6.69% | 6.23% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,229,220K ÷ $23,486,600K
= 5.23%
Genuine Parts Co has demonstrated fluctuations in its operating profit margin over the five-year period from December 31, 2020, to December 31, 2024. The company's operating profit margin has shown a generally increasing trend, starting at 6.23% in 2020 and reaching 7.57% in 2023. However, there was a slight decline in the operating profit margin to 5.23% in 2024.
The uptrend in the operating profit margin from 2020 to 2023 indicates improving operational efficiency and cost management by Genuine Parts Co. This could be attributed to various factors such as effective cost control measures, revenue growth, or operational improvements within the company.
The drop in the operating profit margin in 2024 may raise concerns about the company's ability to maintain profitability levels. It would be important for Genuine Parts Co to analyze the reasons behind this decline and take corrective actions if necessary to sustain or improve its operating profit margin in the future.
Overall, Genuine Parts Co's operating profit margin performance over the five-year period showcases a mixed picture of both progress and challenges, highlighting the importance of ongoing monitoring and strategic decision-making to ensure sustained profitability.