Generac Holdings Inc (GNRC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,547,130 | 3,467,170 | 3,851,930 | 2,914,930 | 1,928,430 |
| Inventory | US$ in thousands | 1,031,650 | 1,167,480 | 1,405,380 | 1,089,700 | 603,317 |
| Inventory turnover | 3.44 | 2.97 | 2.74 | 2.67 | 3.20 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,547,130K ÷ $1,031,650K
= 3.44
Generac Holdings Inc's inventory turnover has shown a fluctuating trend over the years based on the provided data. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times a company has sold and replaced its inventory during a certain period.
In December 31, 2020, the inventory turnover was 3.20. This implies that Generac Holdings Inc sold and replaced its inventory approximately 3.20 times during that year, indicating a moderate efficiency in managing its inventory.
However, by December 31, 2021, the inventory turnover decreased to 2.67. This decrease suggests that the company took longer to sell and replace its inventory in comparison to the previous year, which could indicate potential issues such as overstocking or slowing sales.
The inventory turnover slightly improved to 2.74 by December 31, 2022, and further increased to 2.97 by December 31, 2023. These improvements show a positive trend in managing inventory more efficiently and selling products at a faster rate during those years.
By December 31, 2024, Generac Holdings Inc achieved an inventory turnover of 3.44, the highest in the provided data. This indicates that the company significantly improved its inventory management by selling and replacing its inventory at a faster pace, potentially reducing holding costs and boosting cash flow.
Overall, while there have been fluctuations, Generac Holdings Inc's inventory turnover ratio has generally shown improvement, which suggests enhancements in the efficiency of inventory management and potentially better financial performance.
Peer comparison
Dec 31, 2024