Genuine Parts Co (GPC)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 904,076 | 1,087,895 | 1,212,511 | 1,261,461 | 1,316,524 | 1,251,625 | 1,212,785 | 1,240,820 | 1,182,701 | 1,186,724 | 1,102,951 | 926,918 | 898,790 | 813,995 | 812,941 | 52,073 | -29,102 | -191,388 | -191,432 | 597,370 |
| 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 |
| ROA | 4.69% | 5.37% | 6.43% | 6.88% | 7.33% | 7.35% | 7.16% | 7.34% | 7.17% | 7.25% | 6.79% | 5.70% | 6.26% | 5.82% | 5.77% | 0.37% | -0.22% | -1.42% | -1.44% | 4.13% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $904,076K ÷ $19,282,700K
= 4.69%
From the data provided, Genuine Parts Co's return on assets (ROA) has shown fluctuations over the past several quarters. The company's ROA was positive and relatively stable in the range of 4% to 6% from March 2021 to September 2022, indicating efficient use of assets to generate earnings.
However, the ROA dipped into negative territory in the middle of 2020, which could suggest that during that period, the company's assets were not effectively utilized to generate profits. It is worth noting that the negative ROA figures during that time were quite significant, indicating a potential operational or financial challenge.
Subsequently, Genuine Parts Co's ROA recovered and improved consistently from September 2022 to December 2024, with the ROA ranging from 4.69% to 7.35%. This positive trend suggests that the company enhanced its asset utilization efficiency and profitability during this period.
Overall, Genuine Parts Co's ROA trend reflects periods of both strength and weakness in asset management and earnings generation. The recent improvement in ROA indicates a positive direction for the company's profitability and efficiency in utilizing its assets.