Genuine Parts Co (GPC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,550,930 | 3,076,790 | 2,409,360 | 2,516,610 | 2,802,060 |
| Total stockholders’ equity | US$ in thousands | 4,401,050 | 3,790,360 | 3,490,740 | 3,204,800 | 3,674,710 |
| Debt-to-capital ratio | 0.45 | 0.45 | 0.41 | 0.44 | 0.43 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,550,930K ÷ ($3,550,930K + $4,401,050K)
= 0.45
The debt-to-capital ratio of Genuine Parts Co. fluctuated over the past five years, ranging from 0.41 to 0.48. In Dec 31, 2023 and 2022, the ratio remained stable at 0.47, indicating that 47% of the company's capital structure was financed through debt during those years. In 2021, the ratio decreased to 0.41, suggesting a lower reliance on debt for capital funding. However, in 2020 and 2019, the ratio increased to 0.46 and 0.48 respectively, indicating a higher proportion of debt in the capital structure during those years. Overall, the trend suggests some variability in the company's debt usage relative to its total capital over the period under consideration.