Genuine Parts Co (GPC)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.45 | 4.31 | 4.16 | 4.17 | 4.08 | 4.07 | 4.16 | 4.31 | 4.35 | 4.47 | 4.46 | 4.53 | 4.11 | 4.39 | 4.36 | 4.19 | 4.19 | 4.47 | 4.66 | 4.25 |
Genuine Parts Co's solvency ratios, including the Debt-to-assets ratio, Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio, have consistently shown a stable and healthy financial position over the analyzed period from March 31, 2020, to December 31, 2024.
The Debt-to-assets ratio and Debt-to-capital ratio have consistently remained at 0.00, indicating that the company has not been heavily reliant on debt to finance its assets or operations. This suggests that Genuine Parts Co has been able to maintain a strong financial position with minimal debt obligations in relation to its total assets and capital structure.
Similarly, the Debt-to-equity ratio has also remained at 0.00 throughout the period, highlighting the company's ability to fund its operations without relying on significant external borrowing. This indicates a conservative approach to leverage and a strong equity base supporting its financial structure.
The Financial leverage ratio, which measures the company's reliance on debt financing, has fluctuated slightly over the analyzed period but has generally remained within a reasonable range. The average ratio of around 4.25 to 4.47 indicates that Genuine Parts Co has been managing its financial leverage effectively without excessive risk.
Overall, based on the solvency ratios analyzed, Genuine Parts Co appears to have a solid financial foundation with minimal debt exposure, sound capital structure, and effective management of leverage, positioning the company well for future stability and growth.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 13.15 | 18.22 | 23.50 | 26.43 | 27.98 | 26.67 | 25.05 | 24.29 | 22.28 | 22.74 | 22.16 | 21.26 | 20.67 | 17.76 | 15.37 | 6.54 | 5.27 | 2.85 | 2.95 | 9.93 |
Interest coverage is a key financial ratio that measures a company's ability to meet its interest obligations on outstanding debt. Genuine Parts Co's interest coverage has shown fluctuations over the reporting periods.
From March 31, 2020, where the interest coverage was reported at 9.93, there was a decline in the ratio to 2.95 by June 30, 2020, and further to 2.85 by September 30, 2020. This significant drop could indicate potential challenges in meeting interest payments relative to operating income during that period.
However, Genuine Parts Co's interest coverage improved steadily from December 31, 2020 (5.27) through the following quarters, reaching a peak of 27.98 on December 31, 2023. During this period, the company demonstrated a strong ability to cover its interest expenses with operating income.
In the later quarters, the interest coverage experienced some fluctuations, dipping to 13.15 by December 31, 2024, which may suggest increased pressure on covering interest obligations with current earnings.
Overall, Genuine Parts Co's interest coverage ratio has shown variability over time, and investors and creditors should continue to monitor this ratio to assess the company's ability to make interest payments in the future.