Genuine Parts Co (GPC)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 904,076 | 1,316,520 | 1,182,700 | 898,790 | 163,395 |
| Total assets | US$ in thousands | 19,282,700 | 17,968,500 | 16,495,400 | 14,352,100 | 13,440,200 |
| ROA | 4.69% | 7.33% | 7.17% | 6.26% | 1.22% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $904,076K ÷ $19,282,700K
= 4.69%
Based on the provided data, Genuine Parts Co's return on assets (ROA) has shown a fluctuating trend over the past five years. The ROA was 1.22% as of December 31, 2020, indicating relatively low profitability generated from its assets. However, there has been a notable improvement in subsequent years, with the ROA increasing to 6.26% as of December 31, 2021, and further to 7.17% as of December 31, 2022.
This upward trajectory suggests that the company has been utilizing its assets more efficiently to generate profits. The peak ROA of 7.33% recorded on December 31, 2023, reflects a commendable performance in generating earnings relative to its asset base.
However, there was a slight decline in ROA to 4.69% as of December 31, 2024, which could indicate a potential decrease in profitability efficiency or changes in asset utilization strategies during that period.
Overall, Genuine Parts Co's ROA performance demonstrates an improvement in asset utilization and profitability over the years, although there was a slight dip in the most recent period. Further analysis of the company's financial and operational strategies may provide insights into the drivers behind these fluctuations in ROA.