What is Genuine Parts Co Financial Strength?
Genuine Parts Co has the Financial Strength Rank of 5.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Genuine Parts Co's Interest Coverage for the quarter that ended in Mar. 2025 was 9.21.
Genuine Parts Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.26.
As of today, Genuine Parts Co's Altman Z-Score is 2.50.
Competitive Comparison of Genuine Parts Co's Financial Strength
For the Auto Parts subindustry, Genuine Parts Co's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Genuine Parts Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Genuine Parts Co's Financial Strength falls into.
Genuine Parts Co Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Genuine Parts Co's Interest Expense for the
months ended in Mar. 2025 was €-34 Mil. Its Operating Income for the
months ended in Mar. 2025 was €317 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was €4,892 Mil.
Genuine Parts Co's Interest Coverage for the quarter that ended in Mar. 2025 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Genuine Parts Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Genuine Parts Co has a Z-score of 2.50, indicating it is in Grey Zones. This implies that Genuine Parts Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.5 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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 Business Description
Traded in Other Exchanges
Address
2999 Wildwood Parkway, Atlanta, GA, USA, 30339
Genuine Parts sells aftermarket automotive parts (about 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, serves as a leading distributor of bearings, power transmission, and other industrial products to more than 200,000 maintenance, repair, and original equipment manufacturer customers.
Genuine Parts Co Headlines
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