Genuine Parts Company stock research
FY2024 Q4
Genuine Parts (GPC) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both decreased compared to the previous quarter but increased year-over-year. Gross margin weakened on both comparisons, indicating that cost of revenue grew at a faster pace than revenue in the current quarter relative to those periods.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both decreased compared to the previous quarter but increased year-over-year. Gross margin weakened on both comparisons, indicating that cost of revenue grew at a faster pace than revenue in the current quarter relative to those periods.
- The strongest observable margin driver is the relationship between cost of revenue and revenue, as gross margin declined despite changes in both metrics. One concrete item to monitor is inventory levels, which were highlighted in the company's cash flow discussion as part of working capital changes.
- Compared to the immediately preceding quarter, gross margin weakened as revenue and gross profit declined. Compared to the same quarter one year earlier, gross margin also weakened, as revenue and gross profit increased but at a slower margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.9%
Gross profit
$2.1B
Revenue
$5.8B
Cost of revenue
$3.7B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
-0.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $5.8B | $2.1B | $3.7B | 35.9% |
| Jun 30, 2024 | $6.0B | $2.2B | $3.8B | 36.6% |
| Sep 30, 2024 | $6.0B | $2.2B | $3.8B | 36.8% |
| Dec 31, 2024 | $5.8B | $2.1B | $3.7B | 35.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.9 pts
Year-over-year change
Dec 31, 2023
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue, as gross margin declined despite changes in both metrics. One concrete item to monitor is inventory levels, which were highlighted in the company's cash flow discussion as part of working capital changes.
Compared to the immediately preceding quarter, gross margin weakened as revenue and gross profit declined. Compared to the same quarter one year earlier, gross margin also weakened, as revenue and gross profit increased but at a slower margin.
Monitor inventory levels, as they were noted in the filing as a factor in working capital changes that may affect future gross margin trends.