Genuine Parts Co (GPC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,337,410 | 4,401,050 | 3,790,360 | 3,490,740 | 3,204,800 |
| ROE | 20.84% | 29.91% | 31.20% | 25.75% | 5.10% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $904,076K ÷ $4,337,410K
= 20.84%
Genuine Parts Co's return on equity (ROE) has shown a positive trend over the past five years, starting at 5.10% in December 31, 2020, and steadily increasing to reach 31.20% by December 31, 2022. This indicates a significant improvement in the company's ability to generate profit from its shareholders' equity.
Although there was a slight decrease in ROE to 29.91% by December 31, 2023, followed by a further decline to 20.84% by December 31, 2024, the company still maintains a relatively strong return on equity performance compared to the base year.
Overall, Genuine Parts Co has demonstrated an ability to effectively utilize its shareholders' equity to generate profits, with the ROE showing fluctuations but remaining at healthy levels, showcasing its efficiency in generating returns for shareholders.