Genuine Parts Co (GPC)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,316,520 | 1,182,700 | 898,790 | -29,102 | 621,085 |
| Total assets | US$ in thousands | 17,968,500 | 16,495,400 | 14,352,100 | 13,440,200 | 14,645,600 |
| ROA | 7.33% | 7.17% | 6.26% | -0.22% | 4.24% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,316,520K ÷ $17,968,500K
= 7.33%
Genuine Parts Co.'s return on assets (ROA) has shown a positive trend over the past five years, increasing from 4.24% in 2019 to 7.33% in 2023. This indicates that the company has been more efficient in generating profits relative to its total assets during this period.
The significant improvement in ROA from negative territory in 2020 to 6.26% in 2021 suggests that the company effectively utilized its assets to generate profits and managed to steer out of a negative performance. Subsequently, the consistent growth in ROA in the following years demonstrates the company's ability to sustain and build upon its profitability.
Overall, the upward trajectory of Genuine Parts Co.'s ROA reflects positively on its operational efficiency and asset management, signaling that the company is effectively utilizing its resources to generate returns for its shareholders.