Generac Holdings Inc (GNRC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,467,170 | 3,851,930 | 2,914,930 | 1,928,430 | 1,766,310 |
| Inventory | US$ in thousands | 1,167,480 | 1,405,380 | 1,089,700 | 603,317 | 522,024 |
| Inventory turnover | 2.97 | 2.74 | 2.67 | 3.20 | 3.38 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,467,170K ÷ $1,167,480K
= 2.97
Generac Holdings Inc's inventory turnover has shown a decreasing trend over the past five years, declining from 2.69 in 2019 to 2.28 in 2023. This indicates that the company is taking longer to sell its inventory, which may imply inefficiencies in managing inventory levels or potential issues with sales performance. A lower inventory turnover ratio could also suggest declining demand for the company's products or an accumulation of excess inventory. It is important for Generac Holdings Inc to closely monitor and improve its inventory management practices to enhance operational efficiency and optimize working capital utilization.
Peer comparison
Dec 31, 2023