Genuine Parts Co (GPC)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,742,350 | 1,572,600 | 1,200,350 | 186,871 | 833,893 |
| Revenue | US$ in thousands | 23,026,100 | 22,227,700 | 18,747,300 | 16,432,400 | 19,255,100 |
| Pretax margin | 7.57% | 7.07% | 6.40% | 1.14% | 4.33% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,742,350K ÷ $23,026,100K
= 7.57%
The pretax margin of Genuine Parts Co. has shown a positive trend over the last five years. From 2019 to 2020, there was a significant increase in pretax margin from 4.28% to 6.36%, reflecting improved profitability. This positive trend continued in the following years, reaching 7.55% in 2023.
The consistent growth in pretax margin indicates that the company has been effectively managing its expenses and generating higher profits relative to its revenue. This improvement in profitability could be attributed to various factors such as cost control measures, operational efficiency, or strategic initiatives implemented by the company.
Overall, the increasing trend in pretax margin suggests that Genuine Parts Co. has been successful in enhancing its operational performance and financial health over the years.