Genuine Parts Co (GPC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,272,800 | 1,806,820 | 1,646,490 | 1,262,500 | 1,001,760 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,337,410 | 4,401,050 | 3,790,360 | 3,490,740 | 3,204,800 |
| Return on total capital | 29.34% | 41.05% | 43.44% | 36.17% | 31.26% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,272,800K ÷ ($—K + $4,337,410K)
= 29.34%
Based on the data provided, Genuine Parts Co's return on total capital has shown fluctuations over the past five years. The return on total capital was 31.26% as of December 31, 2020, and it increased to 36.17% by the end of 2021. The company experienced a significant jump in return on total capital to 43.44% as of December 31, 2022, indicating improved efficiency in utilizing its total capital.
However, there was a slight decline in the return on total capital to 41.05% by December 31, 2023. The most recent data point shows a decrease in the return on total capital to 29.34% as of December 31, 2024. This decline may suggest a decrease in profitability or efficiency in capital utilization during that period.
Overall, Genuine Parts Co has shown varying levels of return on total capital over the years, with periods of improvement and decline. Further analysis is recommended to understand the factors contributing to these fluctuations and to assess the company's overall financial performance.