Generac Holdings Inc (GNRC)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,949,805 | 3,935,365 | 3,962,145 | 4,264,295 | 4,525,680 | 4,543,520 | 4,405,498 | 4,039,517 | 3,712,928 | 3,406,940 | 3,165,481 | 2,792,968 | 2,460,119 | 2,289,969 | 2,187,141 | 2,179,689 | 2,172,908 | 2,145,380 | 2,104,640 | 2,055,791 |
| Property, plant and equipment | US$ in thousands | 598,577 | 511,893 | 505,026 | 490,143 | 467,604 | 450,133 | 446,007 | 443,480 | 440,852 | 412,706 | 392,518 | 345,563 | 343,936 | 321,360 | 317,822 | 315,828 | 316,976 | 303,288 | 300,795 | 289,438 |
| Fixed asset turnover | 6.60 | 7.69 | 7.85 | 8.70 | 9.68 | 10.09 | 9.88 | 9.11 | 8.42 | 8.26 | 8.06 | 8.08 | 7.15 | 7.13 | 6.88 | 6.90 | 6.86 | 7.07 | 7.00 | 7.10 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,949,805K ÷ $598,577K
= 6.60
Generac Holdings Inc's fixed asset turnover ratio has shown a declining trend over the past eight quarters, starting at 9.17 in Q1 2022 and decreasing to 6.72 in Q4 2023. This indicates that the company's ability to generate sales revenue from its fixed assets has weakened during this period. The peak performance was seen in Q4 2022 with a ratio of 10.18, suggesting higher efficiency in utilizing fixed assets to generate sales revenue. However, since then, there has been a consistent decrease in the ratio.
A decreasing fixed asset turnover ratio could signify inefficiencies in asset utilization, indicating that the company may not be generating sufficient sales from its investments in fixed assets. This could be due to factors such as excess capacity in production facilities or a slowdown in the demand for the company's products.
Investors and analysts may want to further investigate the reasons behind this downward trend in fixed asset turnover to assess the company's operational efficiency and long-term sustainability.
Peer comparison
Dec 31, 2023
See also:
Generac Holdings Inc Net Fixed Asset Turnover (Quarterly Data)