Genuine Parts Co (GPC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,401,050 | 3,790,360 | 3,490,740 | 3,204,800 | 3,674,710 |
| ROE | 29.91% | 31.20% | 25.75% | -0.91% | 16.90% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,316,520K ÷ $4,401,050K
= 29.91%
Genuine Parts Co.'s return on equity (ROE) has experienced fluctuations over the past five years. In 2023, the company's ROE stood at 29.91%, a slight decrease from the previous year's level of 31.20%. Despite this decline, the ROE remains relatively strong, indicating that the company continues to generate solid returns for its shareholders.
The significant increase in ROE from 2020 to 2021 is noteworthy, with the metric jumping from a negative -0.91% in 2020 to 25.75% in 2021. This turnaround demonstrates the company's ability to enhance profitability and efficiency within a relatively short time frame.
Looking back further, Genuine Parts Co. achieved an ROE of 16.90% in 2019. Compared to the most recent data, this figure represents a notable improvement in the company's performance over the past five years.
Overall, Genuine Parts Co.'s ROE trend indicates a generally positive trajectory, with occasional fluctuations reflecting the dynamic nature of the business environment. The recent levels of ROE suggest that the company is effectively leveraging its equity to generate returns for investors, positioning it as a financially sound and profitable entity.