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Gross Margin % is calculated as gross profit divided by its revenue. Genuine Parts Co's Gross Profit for the three months ended in Mar. 2024 was $2,075 Mil. Genuine Parts Co's Revenue for the three months ended in Mar. 2024 was $5,784 Mil. Therefore, Genuine Parts Co's Gross Margin % for the quarter that ended in Mar. 2024 was 35.87%.
The historical rank and industry rank for Genuine Parts Co's Gross Margin % or its related term are showing as below:
During the past 13 years, the highest Gross Margin % of Genuine Parts Co was 36.14%. The lowest was 29.82%. And the median was 33.12%.
Genuine Parts Co had a gross margin of 35.87% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Genuine Parts Co was 1.80% per year.
The historical data trend for Genuine Parts Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Genuine Parts Co Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Gross Margin % | Get a 7-Day Free Trial | 33.44 | 34.19 | 35.16 | 35.03 | 35.90 |
Genuine Parts Co Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Gross Margin % | Get a 7-Day Free Trial | 34.92 | 36.09 | 36.21 | 36.40 | 35.87 |
For the Auto Parts subindustry, Genuine Parts Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Vehicles & Parts industry and Consumer Cyclical sector, Genuine Parts Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Genuine Parts Co's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
Genuine Parts Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as
Gross Margin % (A: Dec. 2023 ) | = | Gross Profit (A: Dec. 2023 ) | / | Revenue (A: Dec. 2023 ) |
= | 8290.7 | / | 23090.61 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (23090.61 - 14799.938) | / | 23090.61 | |
= | 35.90 % |
Genuine Parts Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as
Gross Margin % (Q: Mar. 2024 ) | = | Gross Profit (Q: Mar. 2024 ) | / | Revenue (Q: Mar. 2024 ) |
= | 2074.7 | / | 5783.631 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (5783.631 - 3708.976) | / | 5783.631 | |
= | 35.87 % |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Genuine Parts Co (NYSE:GPC) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Genuine Parts Co had a gross margin of 35.87% for the quarter that ended in Mar. 2024 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Thank you for viewing the detailed overview of Genuine Parts Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Gary P Fayard | director | ONE COCA COLA PLAZA, ATLANTA GA 30313 |
John D Johns | director | PO BOX 2606, BIRMINGHAM AL 35202 |
Juliette Williams Pryor | director | 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117 |
John R Holder | director | 999 PEACHTREE ST NE, SUITE 688, ATLANTA GA 30309 |
Donna Westbrook Hyland | director | 3344 PEACHTREE ROAD NE STE 1800, ATLANTA GA 30326 |
Paul Russell Hardin | director | 2999 WILDWOOD PARKWAY SE, ATLANTA GA 30339 |
Richard Jr Cox | director | 2999 WILDWOOD PARKWAY, ATLANTA GA 30339 |
Paul D Donahue | director, officer: Chairman and CEO | 214 N TRYON STREET, CHARLOTTE NC 28202 |
Loudermilk Robert C Jr | director | 309 E. PACES FERRY RD N.E., ATLANTA GA 30305-2377 |
Darren M Rebelez | director | 1722 ROUTH STREET, SUITE 1000, DALLAS TX 75201-2502 |
Randall P Breaux | officer: Group President, GPC N.A. | 5711 R S BOREHAM JR ST, P O BOX 2400, FORT SMITH AR 72902 |
Naveen Krishna | officer: EVP, CIDO | 2999 WILDWOOD PKWY, ATLANTA GA 30339 |
Wendy B Needham | director | 2999 CIRCLE 75 PRKWAY, ATLANTA GA 30339 |
Christopher T Galla | officer: SVP and General Counsel | 2999 WILDWOOD PKWY, ATLANTA GA 30339 |
Wood E Jenner Iii | director | SUNTRUST BANKS INC, P O BOX 4418 MC643, ATLANTA GA 30302 |
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