Genuine Parts Co.

Company Profile: Genuine Parts Co. ( GPC) is a service organization, which is engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials.

Liability Adjusted Cash Flow Yield: 4.40%

Dividend Yield: 2.99%

Dividend Acid Test: Pass

TheStreet Ratings' Grade: Buy (A+) -- Genuine Parts' gross profit margin for the third quarter of its fiscal year 2011 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. Genuine Parts Co. has weak liquidity. Currently, the Quick Ratio is 0.92, which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged, increasing by only 4.06% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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