Genuine Parts Co (GPC)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 19,282,700 | 17,968,500 | 16,495,400 | 14,352,100 | 13,440,200 |
| Operating ROA | 6.37% | 9.72% | 9.98% | 8.80% | 7.66% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,229,220K ÷ $19,282,700K
= 6.37%
The operating return on assets (operating ROA) for Genuine Parts Co has exhibited varying trends over the years, as per the data provided.
- In December 31, 2020, the operating ROA was 7.66%, indicating that the company generated 7.66 cents of operating income for every dollar of assets it had.
- By December 31, 2021, the operating ROA increased to 8.80%, signifying improved operational efficiency and profitability.
- In December 31, 2022, Genuine Parts Co saw a further enhancement in operating ROA to 9.98%, showcasing a more robust utilization of assets to generate operating income.
- Although the operating ROA slightly dipped to 9.72% by December 31, 2023, the company still maintained a relatively high level of efficiency in generating operating profit from its assets.
- However, by December 31, 2024, the operating ROA decreased to 6.37%, representing a decline in the company's ability to generate operating income in relation to its asset base.
In summary, Genuine Parts Co experienced fluctuations in its operating ROA over the years, with an overall increasing trend followed by a decline in the most recent year. This indicates the importance of evaluating the company's operational performance and asset management strategies to sustain and enhance profitability in the long term.