Generac Holdings Inc (GNRC)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,290,970 | 3,925,040 | 4,496,170 | 3,703,400 | 2,452,210 |
| Property, plant and equipment | US$ in thousands | 690,023 | 598,577 | 467,604 | 440,852 | 343,936 |
| Fixed asset turnover | 6.22 | 6.56 | 9.62 | 8.40 | 7.13 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,290,970K ÷ $690,023K
= 6.22
Generac Holdings Inc's fixed asset turnover has shown a generally increasing trend over the past five years. The ratio increased from 7.13 in December 2020 to 8.40 in December 2021, indicating that the company generated $8.40 in sales for every $1 of fixed assets during that period. Subsequently, the ratio rose further to 9.62 in December 2022, reflecting improved efficiency in utilizing fixed assets to generate revenue.
However, there was a significant drop in the fixed asset turnover to 6.56 in December 2023, which may suggest a decline in the company's ability to generate sales relative to its investment in fixed assets. This decrease continued into December 2024, with the ratio further falling to 6.22, potentially indicating ongoing challenges in effectively leveraging fixed assets to drive revenue.
Overall, while there have been fluctuations in Generac Holdings Inc's fixed asset turnover, it is essential for the company to closely monitor and manage its fixed asset utilization to ensure optimal efficiency and profitability in the long term.
Peer comparison
Dec 31, 2024