Genuine Parts Co (GPC)

Solvency ratios

	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
Debt-to-assets ratio	0.20	0.17	0.18	0.18	0.19	0.20	0.20	0.21	0.17	0.17	0.18	0.18	0.19	0.20	0.21	0.19	0.19	0.19	0.20	0.17
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
Debt-to-equity ratio	0.81	0.71	0.73	0.79	0.81	0.88	0.91	0.94	0.69	0.76	0.76	0.74	0.79	0.90	0.96	0.80	0.76	0.77	0.78	0.67
Financial leverage ratio	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	3.99	3.98	3.99	3.96

From the data provided, we can analyze Genuine Parts Co.'s solvency ratios over the past eight quarters:

1. Debt-to-assets ratio: This ratio indicates the proportion of a company's assets that are financed by debt. Genuine Parts Co. has maintained a relatively stable debt-to-assets ratio ranging between 0.19 and 0.22 over the past two years. This implies that around 19% to 22% of the company's assets are funded by debt.

2. Debt-to-capital ratio: The debt-to-capital ratio measures the proportion of a company's capital structure that is financed by debt. Genuine Parts Co.'s debt-to-capital ratio has also remained fairly consistent, fluctuating between 0.44 and 0.49. This suggests that approximately 44% to 49% of the company's capital comes from debt sources.

3. Debt-to-equity ratio: The debt-to-equity ratio indicates the extent to which a company is leveraged through debt relative to its equity. Genuine Parts Co. has displayed a consistent trend in its debt-to-equity ratio, staying within the range of 0.79 to 0.98. This signifies that the company has a significant reliance on debt financing compared to equity.

4. Financial leverage ratio: The financial leverage ratio measures the extent to which a company is using debt to support its operations. Genuine Parts Co.'s financial leverage ratio has shown some fluctuations, ranging from 4.07 to 4.53. This suggests that the company's financial leverage has varied, indicating changes in the proportion of debt used to finance its assets over the quarters.

Overall, the analysis of these solvency ratios demonstrates Genuine Parts Co.'s consistent reliance on debt financing to support its operations and growth initiatives. Investors and creditors may monitor these ratios to assess the company's ability to meet its debt obligations and manage its overall financial risk.

Coverage ratios

	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
Interest coverage	28.03	26.67	25.05	24.29	22.28	22.77	22.33	20.48	20.31	17.19	14.70	4.37	3.05	0.92	1.00	10.06	10.17	11.45	11.52	11.22

Interest coverage is a financial ratio that measures a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the company's interest expenses. A higher interest coverage ratio indicates a greater ability to meet interest obligations.

Based on the data provided for Genuine Parts Co., the interest coverage has been consistently strong over the past eight quarters. The interest coverage ratio has ranged from a low of 19.46 in Q1 2022 to a high of 27.10 in Q4 2023. This shows that the company has consistently been able to cover its interest expenses with its earnings before interest and taxes.

The increasing trend in the interest coverage ratio over the quarters indicates improving financial health and stability for Genuine Parts Co. The company's ability to generate sufficient earnings to cover its interest expenses is a positive sign of its financial strength and ability to meet debt obligations.

Overall, the interest coverage ratio analysis suggests that Genuine Parts Co. has a solid financial position and the ability to comfortably meet its interest payments, indicating a lower risk of default on its debt obligations.