Generac Holdings Inc (GNRC)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,547,131 | 3,434,438 | 3,409,014 | 3,438,554 | 3,467,167 | 3,511,548 | 3,549,719 | 3,712,163 | 3,851,933 | 3,800,448 | 3,581,652 | 3,260,387 | 2,914,932 | 2,620,687 | 2,403,793 | 2,129,948 | 1,928,430 | 1,824,898 | 1,778,457 | 1,774,617 |
| Payables | US$ in thousands | 458,693 | 424,812 | 406,296 | 381,352 | 340,719 | 394,168 | 454,727 | 426,191 | 446,050 | 523,552 | 614,009 | 697,486 | 674,208 | 611,181 | 526,375 | 387,933 | 330,247 | 272,745 | 230,229 | 266,917 |
| Payables turnover | 7.73 | 8.08 | 8.39 | 9.02 | 10.18 | 8.91 | 7.81 | 8.71 | 8.64 | 7.26 | 5.83 | 4.67 | 4.32 | 4.29 | 4.57 | 5.49 | 5.84 | 6.69 | 7.72 | 6.65 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,547,131K ÷ $458,693K
= 7.73
Generac Holdings Inc's payables turnover ratio has fluctuated over the period from March 31, 2020, to December 31, 2024. The payables turnover ratio measures the efficiency with which the company pays its suppliers.
The ratio started at 6.65 on March 31, 2020, and generally increased until reaching a peak of 10.18 on December 31, 2023. This upward trend indicates that Generac Holdings Inc was managing its payables more effectively over this period.
However, the ratio declined slightly to 7.73 on December 31, 2024, suggesting a potential slowdown in the company's ability to pay its suppliers, which could impact its cash flow and relationships with vendors.
Overall, the fluctuations in the payables turnover ratio for Generac Holdings Inc indicate changes in the company's payment practices and efficiency in managing its accounts payable over the analyzed period. Continued monitoring of this ratio is important to assess the company's liquidity and supplier relationships.
Peer comparison
Dec 31, 2024