Genuine Parts's Return on Invested Capital Insights

According to Benzinga Pro, during Q4, Genuine Parts GPC earned $256.00 million, a 11.99% increase from the preceding quarter. Genuine Parts's sales decreased to $4.80 billion, a 0.33% change since Q3. In Q3, Genuine Parts earned $228.59 million, whereas sales reached $4.82 billion.

Why Is ROIC Significant?

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q4, Genuine Parts posted an ROIC of 5.26%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q4, Genuine Parts posted an ROIC of 5.26%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

For Genuine Parts, the positive return on invested capital ratio of 5.26% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Analyst Predictions

Genuine Parts reported Q4 earnings per share at $1.79/share, which beat analyst predictions of $1.6/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.