Genuine Parts Co (GPC)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,299,999 | 1,529,408 | 1,631,687 | 1,674,264 | 1,763,702 | 1,697,964 | 1,668,955 | 1,715,756 | 1,652,019 | 1,656,996 | 1,501,476 | 1,228,823 | 1,132,641 | 1,020,642 | 1,027,398 | 1,023,571 | 964,492 | 976,999 | 973,525 | 1,042,212 |
| Total assets | US$ in thousands | 19,282,700 | 20,259,200 | 18,869,400 | 18,336,500 | 17,968,500 | 17,021,900 | 16,941,600 | 16,907,500 | 16,495,400 | 16,377,100 | 16,238,200 | 16,273,300 | 14,352,100 | 13,974,900 | 14,086,000 | 13,943,500 | 13,440,200 | 13,475,500 | 13,264,000 | 14,451,400 |
| Operating ROA | 6.74% | 7.55% | 8.65% | 9.13% | 9.82% | 9.98% | 9.85% | 10.15% | 10.02% | 10.12% | 9.25% | 7.55% | 7.89% | 7.30% | 7.29% | 7.34% | 7.18% | 7.25% | 7.34% | 7.21% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,299,999K ÷ $19,282,700K
= 6.74%
The operating return on assets (operating ROA) for Genuine Parts Co has shown fluctuating trends over the period from March 31, 2020, to December 31, 2024. The operating ROA started at 7.21% in March 2020 and generally hovered around the range of 7% to 8% until June 2022.
From June 2022 to December 2023, there was a notable and sustained increase in operating ROA, reaching a peak of 10.15% in March 2023. This suggests that the company was able to generate more profit from its operating activities relative to its asset base during this period.
However, starting from June 2023, there was a gradual decline in the operating ROA, falling to 6.74% by December 31, 2024. This decline could indicate potential challenges or inefficiencies in managing the company's operating assets to generate profits.
Overall, it is important for Genuine Parts Co to closely monitor and analyze the factors influencing its operating ROA to ensure sustainable profitability and efficient asset utilization in the future.