Genuine Parts Co (GPC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,272,795 | 1,507,696 | 1,663,172 | 1,725,594 | 1,803,993 | 1,725,653 | 1,680,922 | 1,722,193 | 1,646,489 | 1,651,466 | 1,519,107 | 1,353,727 | 1,284,805 | 1,183,988 | 1,203,644 | 578,238 | 479,605 | 256,666 | 267,486 | 878,712 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 29.34% | 32.10% | 36.63% | 39.20% | 40.99% | 41.22% | 41.29% | 43.86% | 43.44% | 45.07% | 41.73% | 37.65% | 36.81% | 37.20% | 37.22% | 17.39% | 14.97% | 8.52% | 9.39% | 25.82% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,272,795K ÷ ($—K + $4,337,410K)
= 29.34%
Based on the data provided for Genuine Parts Co, the return on total capital has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The return on total capital ranged from a low of 8.52% in September 30, 2020, to a high of 45.07% in September 30, 2022.
The return on total capital increased from 25.82% in March 31, 2020, to 41.73% in June 30, 2022, representing a significant improvement in profitability and capital utilization efficiency. This increase suggests that the company was effectively generating profits from its total capital base during this period.
However, there was a slight decline in the return on total capital in the subsequent quarters, with the ratio decreasing to 29.34% by December 31, 2024. This decline may indicate potential challenges in maintaining or improving profitability relative to the capital employed by the company.
Overall, Genuine Parts Co's return on total capital performance reflects periods of both growth and moderation. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's ability to generate profits from its total capital and to maintain sustainable financial performance in the future.