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Genuine Parts GPC Europe — Goodwill impairment charge

Discontinued — last reported Q2 '20

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Other financials

Income statement

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Revenue$6.3B+6.8%
Gross profit$2.3B+7.6%
Net income$188.5M-3.0%
EPS (diluted)$1.37-2.1%

Balance sheet

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Cash & equivalents$500.0M+18.9%
Total debt$6.4B+4.2%
Total equity$4.5B+0.6%
Total assets$21.0B+5.9%

Cash flow

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Operating cash flow$63.9M+257%
CapEx$97.6M-18.6%
Free cash flow-$33.6M+79.1%

Valuation

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Market cap$14.96B-11.0%
Enterprise value$20.82B-7.4%
P/E17.3×+4.3×
P/S0.6×-0.1×

Profitability

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Gross margin36.9%+0.3pp
Net margin3.4%-1.3pp
FCF margin2.2%+0.7pp

Returns & leverage

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Return on equity17.1%-7.4pp
Debt / equity1.4×0.0×
Current ratio1.1×-0.1×

Where this comes from

Reported directly by Genuine Parts in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Genuine Parts’s 10-K, filed February 23, 2023, on SEC EDGAR. View the filing →

Questions, answered.

What does europe — goodwill impairment charge mean?
A non-cash charge taken when the value of a previously acquired business in Europe is deemed lower than its recorded book value.
How do you interpret europe — goodwill impairment charge?
An increase signals that previous acquisitions are underperforming or that the regional business environment has deteriorated, potentially indicating poor capital allocation history.
How does europe — goodwill impairment charge compare across companies?
Peers periodically report impairment charges during economic downturns or following strategic shifts; frequent charges are viewed negatively by investors as a sign of overpayment for acquisitions.