Generac Holdings Inc (GNRC)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 1,766,202 | 1,749,229 | 1,709,953 | 1,672,845 |
| Payables | US$ in thousands | 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 | 261,977 | 241,290 | 259,696 | 290,871 |
| Payables turnover | 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 | 6.74 | 7.25 | 6.58 | 5.75 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,467,167K ÷ $340,719K
= 10.18
Generac Holdings Inc's payables turnover ratio has shown a consistent increasing trend over the past eight quarters, indicating efficiency in managing its accounts payable. The company's payables turnover ratio increased from 3.82 in Q1 2022 to 7.80 in Q4 2023. This suggests that Generac Holdings Inc is paying off its suppliers more frequently relative to its cost of goods sold. A higher payables turnover ratio typically reflects a shorter time period to pay off suppliers, potentially signaling strong liquidity and effective working capital management. Overall, the increasing trend in Generac Holdings Inc's payables turnover ratio demonstrates improvements in the company's ability to efficiently manage its accounts payable obligations over the analyzed period.
Peer comparison
Dec 31, 2023