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GPC (Genuine Parts Co) Degree of Operating Leverage : -14.82 (As of Mar. 2025)


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What is Genuine Parts Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Genuine Parts Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -14.82. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Genuine Parts Co's Degree of Operating Leverage or its related term are showing as below:

GPC's Degree of Operating Leverage is ranked better than
91.32% of 1290 companies
in the Vehicles & Parts industry
Industry Median: 1.01 vs GPC: -14.82

Genuine Parts Co Degree of Operating Leverage Historical Data

The historical data trend for Genuine Parts Co's Degree of Operating Leverage 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.

* Premium members only.

Genuine Parts Co Degree of Operating Leverage Chart

Genuine Parts Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.34 11.94 1.78 2.16 -17.24

Genuine Parts Co Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.15 -0.73 -10.48 -17.24 -14.82

Competitive Comparison of Genuine Parts Co's Degree of Operating Leverage

For the Auto Parts subindustry, Genuine Parts Co's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.


Genuine Parts Co's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Genuine Parts Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Genuine Parts Co's Degree of Operating Leverage falls into.


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Genuine Parts Co Degree of Operating Leverage Calculation

Genuine Parts Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1218.777 (Mar. 2025) / 1728.418 (Mar. 2024) - 1 )/( 23569.007 (Mar. 2025) / 23109.123 (Mar. 2024) - 1 )
=-0.2949/0.0199
=-14.82***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Genuine Parts Co  (NYSE:GPC) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Genuine Parts Co Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Genuine Parts Co's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Genuine Parts Co Business Description

Traded in Other Exchanges
Address
2999 Wildwood Parkway, Atlanta, GA, USA, 30339
Genuine Parts sells aftermarket automotive parts (60% of sales) and industrial products (40% of sales) in the United States and internationally. The automotive segment primarily acts as a distributor to its network of 9,800 global retail locations of which about two thirds are independently owned and operated. We estimate Genuine serves around 6,000 retail locations in the US operating under the Napa Auto Parts brand, with about 80% of end-market sales derived from professional customers. Its industrial segment, primarily operating under the Motion banner in the United States, is a leading distributor of bearings, power transmission, and other industrial products to more than 200,000 maintenance, repair, and original equipment manufacturer customers.
Executives
Wendy B Needham director 2999 CIRCLE 75 PRKWAY, ATLANTA GA 30339
Randall P Breaux officer: Group President, GPC N.A. 5711 R S BOREHAM JR ST, P O BOX 2400, FORT SMITH AR 72902
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
Naveen Krishna officer: EVP, CIDO 2999 WILDWOOD PKWY, 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