Genuine Parts Co (GPC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,337,410 | 4,696,470 | 4,540,650 | 4,402,380 | 4,401,050 | 4,186,110 | 4,071,210 | 3,926,200 | 3,790,360 | 3,664,450 | 3,640,560 | 3,595,740 | 3,490,740 | 3,183,180 | 3,233,880 | 3,324,560 | 3,204,800 | 3,014,080 | 2,849,280 | 3,402,700 |
| ROE | 20.84% | 23.16% | 26.70% | 28.65% | 29.91% | 29.90% | 29.79% | 31.60% | 31.20% | 32.38% | 30.30% | 25.78% | 25.75% | 25.57% | 25.14% | 1.57% | -0.91% | -6.35% | -6.72% | 17.56% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $904,076K ÷ $4,337,410K
= 20.84%
To analyze Genuine Parts Co's return on equity (ROE) over the given periods, we observe fluctuations in ROE as follows:
1. The ROE declined from 17.56% in March 2020 to -6.72% in June 2020, reflecting a significant decrease. This negative ROE indicated that the company's net income was insufficient to cover shareholders' equity during that period.
2. The negative trend continued through September 2020 (-6.35%) and December 2020 (-0.91%). The ROE remained below zero, suggesting continued challenges in generating profits relative to shareholders' equity.
3. As of March 2021, the ROE improved to 1.57%, indicating a small but positive return for shareholders. The subsequent quarters showed a steady increase in ROE, reaching 30.30% by June 2022.
4. The ROE peaked at 32.38% in September 2022, signifying a period of strong profitability relative to equity. However, the ROE slightly decreased, settling at 20.84% by December 2024.
In summary, Genuine Parts Co's ROE experienced significant fluctuations over the observed periods, ranging from negative values to strong positive returns. The company showed resilience by improving its ROE over time, but with some variability in performance. Further analysis would be needed to understand the factors driving these changes in ROE.