Generac Holdings Inc (GNRC)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	2.97	2.68	2.47	2.58	2.74	2.67	2.89	2.64	2.67	2.80	3.11	3.30	3.20	3.42	3.27	3.17	3.38	3.38	3.00	2.84
Receivables turnover	7.35	6.68	7.33	8.70	8.66	8.37	6.36	6.62	6.79	6.67	6.58	6.51	6.56	5.75	6.77	6.99	6.80	5.74	6.16	7.22
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
Working capital turnover	3.54	3.11	2.97	3.34	3.80	3.76	3.34	4.63	5.36	3.76	3.70	2.43	2.39	2.48	2.70	3.00	3.11	3.24	3.68	3.76

Generac Holdings Inc's activity ratios reflect the efficiency of the company in managing its various operating assets and liabilities.

1. Inventory Turnover: The ratio has been relatively stable over the quarters, ranging from 1.89 to 2.35. This indicates that on average, Generac turned over its inventory approximately 2 times a quarter. A higher inventory turnover is generally preferable as it signifies that the company is efficiently selling its products and avoiding excess stock levels.

2. Receivables Turnover: The trend in this ratio fluctuates but generally indicates that Generac collects its receivables quite efficiently. A higher turnover ratio suggests that the company is able to collect outstanding payments more quickly. The ratio has ranged from 6.41 to 8.80, showing variability in the collection process over the quarters.

3. Payables Turnover: The payables turnover ratio has been relatively consistent, ranging from 4.76 to 7.80. A higher turnover ratio in payables indicates that Generac is paying off its suppliers faster, potentially taking advantage of any discounts offered for early payment.

4. Working Capital Turnover: This ratio measures how effectively Generac is utilizing its working capital to generate sales. The ratio has fluctuated but generally remained above 3, signaling that the company is efficiently using its resources to support its operations and generate revenue.

Overall, the activity ratios of Generac Holdings Inc suggest that the company is effectively managing its operating assets and liabilities to support its sales and operational activities.

Average number of days

		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
Days of inventory on hand (DOH)	days	122.90	136.28	147.72	141.42	133.17	136.83	126.42	138.46	136.45	130.22	117.35	110.46	114.19	106.60	111.72	115.12	107.88	107.93	121.74	128.38
Days of sales outstanding (DSO)	days	49.65	54.65	49.78	41.97	42.14	43.58	57.36	55.11	53.72	54.71	55.45	56.03	55.62	63.48	53.89	52.25	53.68	63.56	59.23	50.53
Number of days of payables	days	35.87	40.97	46.76	41.91	42.27	50.28	62.57	78.08	84.42	85.12	79.93	66.48	62.51	54.55	47.25	54.90	54.14	50.35	55.43	63.47

Generac Holdings Inc's activity ratios provide insights into the efficiency of its operations over time.

1. Days of Inventory on Hand (DOH): The trend in DOH indicates the average number of days it takes for Generac to convert its inventory into sales. The decreasing trend from Q2 2023 to Q1 2023 suggests that the company is managing its inventory more efficiently. However, the DOH increased in Q4 2023 compared to the previous quarter, indicating a potential build-up in inventory.

2. Days of Sales Outstanding (DSO): DSO reflects how long it takes for Generac to collect payments from customers. There is some fluctuation in DSO over the quarters, but a general decreasing trend from Q3 2022 to Q1 2023 indicates that the company may be improving its collection process and effectively managing its accounts receivable.

3. Number of Days of Payables: This ratio measures how long it takes Generac to pay its suppliers. The trend shows fluctuations in the number of days of payables, with a significant decrease from Q4 2022 to Q1 2022. A lower number of days of payables can indicate better liquidity management but may also suggest strained relations with suppliers.

Overall, analyzing these activity ratios collectively can help assess Generac's operational efficiency, inventory management, accounts receivable collection, and vendor payment strategies over the quarters.

Long-term

	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
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
Total asset turnover	0.78	0.76	0.74	0.82	0.88	0.87	0.80	0.78	0.76	0.83	0.85	0.82	0.76	0.77	0.79	0.82	0.82	0.83	0.83	0.83

The fixed asset turnover ratio for Generac Holdings Inc has been consistently high over the past eight quarters, ranging from 6.72 to 10.18. This indicates that the company is generating significant revenue relative to its investment in fixed assets. The increasing trend in the fixed asset turnover suggests that Generac is efficiently utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio for Generac has been relatively stable, fluctuating between 0.76 and 0.88. This ratio indicates the company's ability to generate sales in relation to its total assets. A total asset turnover below 1 suggests that Generac has a significant investment in assets relative to its sales.

Overall, the high fixed asset turnover and relatively stable total asset turnover ratios suggest that Generac Holdings Inc is effectively managing and utilizing its assets to generate revenue. However, the company may have a relatively high level of investment in assets compared to its sales, as indicated by the total asset turnover ratios consistently below 1.