Generac Holdings Inc (GNRC)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,290,970 | 3,925,040 | 4,496,170 | 3,703,400 | 2,452,210 |
| Receivables | US$ in thousands | 612,107 | 537,316 | 522,458 | 546,466 | 374,906 |
| Receivables turnover | 7.01 | 7.30 | 8.61 | 6.78 | 6.54 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,290,970K ÷ $612,107K
= 7.01
Generac Holdings Inc's receivables turnover has shown a consistent trend of improvement over the years, increasing from 6.54 in 2020 to 7.01 in 2024. This indicates that the company is collecting its accounts receivable more efficiently as higher turnover ratios suggest quicker conversion of receivables into cash.
The peak turnover ratio of 8.61 in 2022 reflects improved efficiency in collecting outstanding receivables. However, it is worth noting that the ratio dipped slightly in subsequent years, albeit remaining above the initial ratio in 2020.
Overall, the upward trend in Generac Holdings Inc's receivables turnover implies effective management of credit sales and collection processes, contributing to the company's liquidity and cash flow position. This trend signifies a positive aspect of the company's financial health by demonstrating enhanced efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2024