Genuine Parts Co (GPC)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.45 | 0.41 | 0.42 | 0.44 | 0.45 | 0.47 | 0.48 | 0.49 | 0.41 | 0.43 | 0.43 | 0.43 | 0.44 | 0.47 | 0.49 | 0.44 | 0.43 | 0.43 | 0.44 | 0.40 |
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. has been relatively stable over the past eight quarters, ranging between 0.44 and 0.49. This ratio represents the proportion of the company's capital structure that is financed by debt, with values closer to 1 indicating higher reliance on debt financing.
The trend over the past year shows that Genuine Parts Co. has maintained a moderate level of debt as part of its capital structure, with the ratio hovering around 0.47 on average. This suggests that the company has a balanced approach to funding its operations through a combination of debt and equity.
While the slight fluctuations in the debt-to-capital ratio are normal for a company of Genuine Parts Co.'s size and industry, it is important for stakeholders to monitor these changes to ensure that the company's debt levels remain sustainable and in line with its overall financial strategy. Additionally, comparing this ratio to industry peers can provide further insights into Genuine Parts Co.'s capital structure and financial health.