Genuine Parts Co (GPC)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 17,968,500 | 16,495,400 | 14,352,100 | 13,440,200 | 14,645,600 |
| Operating ROA | 9.72% | 9.79% | 8.10% | 3.09% | 6.16% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,747,050K ÷ $17,968,500K
= 9.72%
Genuine Parts Co.'s operating return on assets (operating ROA) has demonstrated a generally positive trend over the past five years, increasing from 7.49% in 2019 to 9.72% in 2023. This upward trajectory indicates an improvement in the company's efficiency in generating profits from its assets used in operations.
The operating ROA of 9.72% in 2023 suggests that for every dollar of assets employed in the company's core operations, it generated approximately $0.0972 in operating profits. This signifies a solid performance in utilizing its assets effectively to generate operating income.
Comparing the operating ROA to the previous years, the company has been able to maintain relatively high levels of efficiency in utilizing its assets to generate operating profits. The slight fluctuations in the ratio over the years may be indicative of varying operational efficiencies and profitability levels but, overall, Genuine Parts Co. has shown a consistent ability to generate operating income relative to its asset base.
Overall, the upward trend in Genuine Parts Co.'s operating ROA indicates a positive performance in terms of asset utilization and operational profitability, reflecting the company's efficiency in managing its operational resources.