Genuine Parts Co (GPC)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,806,817 | 1,725,653 | 1,680,922 | 1,722,193 | 1,646,489 | 1,653,740 | 1,530,725 | 1,303,879 | 1,262,496 | 1,146,241 | 1,151,166 | 386,355 | 277,919 | 82,901 | 90,396 | 890,610 | 930,258 | 1,141,708 | 1,132,966 | 1,139,341 |
| Long-term debt | US$ in thousands | 3,550,930 | 2,963,450 | 2,986,140 | 3,094,320 | 3,076,790 | 3,231,670 | 3,304,220 | 3,387,850 | 2,409,360 | 2,432,540 | 2,472,980 | 2,458,020 | 2,516,610 | 2,700,620 | 2,727,930 | 2,726,390 | 2,802,060 | 2,795,880 | 2,871,110 | 2,389,240 |
| Total stockholders’ equity | US$ in thousands | 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 | 3,674,710 | 3,642,190 | 3,665,330 | 3,550,930 |
| Return on total capital | 22.72% | 24.14% | 23.82% | 24.53% | 23.98% | 23.98% | 22.04% | 18.67% | 21.40% | 20.41% | 20.17% | 6.68% | 4.86% | 1.45% | 1.62% | 14.53% | 14.36% | 17.73% | 17.33% | 19.18% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,806,817K ÷ ($3,550,930K + $4,401,050K)
= 22.72%
Genuine Parts Co. has shown consistent and relatively strong performance in terms of return on total capital over the past eight quarters. The company's return on total capital ranged between 17.24% and 23.26% during this period.
The return on total capital for the latest quarter, Q4 2023, was 21.03%, indicating the company generated a return of 21.03% for every dollar of total capital employed during the quarter. This performance was slightly below the previous quarter's return of 22.33% but remained within the range of historical performance.
Overall, Genuine Parts Co. has demonstrated efficient utilization of its total capital to generate returns for its stakeholders. However, it would be beneficial to monitor future quarters to assess the sustainability of this performance and any potential changes in the company's capital efficiency.