Genuine Parts Co (GPC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,282,700 | 17,968,500 | 16,495,400 | 14,352,100 | 13,440,200 |
| Total stockholders’ equity | US$ in thousands | 4,337,410 | 4,401,050 | 3,790,360 | 3,490,740 | 3,204,800 |
| Financial leverage ratio | 4.45 | 4.08 | 4.35 | 4.11 | 4.19 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,282,700K ÷ $4,337,410K
= 4.45
The financial leverage ratio for Genuine Parts Co has shown some fluctuations over the past five years. Starting at 4.19 in December 31, 2020, the ratio decreased slightly to 4.11 by December 31, 2021, indicating a lower dependence on debt to finance its operations. However, by December 31, 2022, the ratio increased to 4.35, suggesting a higher level of debt usage during that period.
Subsequently, the financial leverage ratio decreased again to 4.08 by December 31, 2023, signaling a potential reduction in debt levels relative to assets. Finally, by December 31, 2024, the ratio rose significantly to 4.45, indicating a notable increase in the company's reliance on debt to support its financial structure.
Overall, Genuine Parts Co's financial leverage ratio has exhibited variability, with some years showing a higher reliance on debt financing than others. It is crucial for stakeholders to closely monitor these fluctuations to assess the company's risk exposure and financial stability.