Genuine Parts Co (GPC)

Genuine Parts Co has consistently shown a strong solvency position over the years based on the solvency ratios analyzed. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 across the years from 2020 to 2024, indicating that the company has not relied on debt financing to fund its assets, capital, or equity during this period.

Furthermore, the Financial leverage ratio, though showing slight fluctuations year over year, has generally remained at a moderate level, ranging from 4.08 to 4.45. This suggests that Genuine Parts Co has maintained a relatively stable level of financial leverage, with the company being able to meet its financial obligations without excessive reliance on debt.

Overall, the consistent low debt ratios and moderate financial leverage ratio demonstrate Genuine Parts Co's prudent financial management and strong solvency position, which bodes well for the company's ability to weather financial challenges and sustain long-term growth.

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Coverage ratios

Interest coverage measures a company's ability to meet its interest obligations with its operating income. Looking at the data for Genuine Parts Co, we observe a fluctuating trend in interest coverage over the years.

As of December 31, 2020, the interest coverage ratio stood at 11.00, indicating that the company's operating income was able to cover its interest expenses 11 times over.

By December 31, 2021, the interest coverage improved significantly to 20.31, suggesting a stronger ability to meet interest payments from operating earnings. This positive trend continued into December 31, 2022, where the interest coverage ratio increased further to 22.28.

In the subsequent year, December 31, 2023, the interest coverage ratio rose even higher to 28.03, reflecting the company's robust ability to service its interest obligations.

However, there was a notable dip in the interest coverage ratio by December 31, 2024, where it dropped to 13.15. This decrease may indicate a potential decrease in operating income relative to interest expenses, which could be a point of concern for stakeholders.

Overall, Genuine Parts Co's interest coverage has shown fluctuations over the years, with some periods of strong coverage and others where it fell below previous levels. Monitoring this ratio closely can provide insights into the company's financial health and its ability to handle debt obligations.