Generac Holdings Inc (GNRC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,925,040 | 4,496,170 | 3,703,400 | 2,452,210 | 2,161,870 |
| Property, plant and equipment | US$ in thousands | 598,577 | 467,604 | 440,852 | 343,936 | 316,976 |
| Fixed asset turnover | 6.56 | 9.62 | 8.40 | 7.13 | 6.82 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,925,040K ÷ $598,577K
= 6.56
Generac Holdings Inc's fixed asset turnover has exhibited fluctuations over the past five years. The ratio has ranged from a low of 6.72 in 2023 to a high of 9.76 in 2022, indicating variations in how effectively the company is generating sales from its investment in fixed assets. A higher fixed asset turnover ratio suggests that the company is efficiently utilizing its fixed assets to generate revenue.
Overall, the trend shows that Generac Holdings Inc has been generally effective in leveraging its fixed assets to drive sales, with the ratio consistently above 7. This indicates that the company is able to generate a relatively high level of sales revenue per dollar of investment in fixed assets. However, the fluctuations in the ratio suggest potential changes in the company's asset utilization efficiency over the years, which may warrant further investigation into the company's operations and asset management practices.
Peer comparison
Dec 31, 2023