Generac Holdings Inc (GNRC)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,925,040 | 4,496,170 | 3,703,400 | 2,452,210 | 2,161,870 |
| Total assets | US$ in thousands | 5,093,310 | 5,169,460 | 4,877,780 | 3,235,420 | 2,665,670 |
| Total asset turnover | 0.77 | 0.87 | 0.76 | 0.76 | 0.81 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,925,040K ÷ $5,093,310K
= 0.77
Generac Holdings Inc's total asset turnover has shown a fluctuating trend over the past five years. The ratio stood at 0.79 as of December 31, 2023, which indicates that the company generated $0.79 in revenue for every dollar of assets held during the year.
Comparing this to the previous years, we can see that the total asset turnover was relatively higher at 0.88 in 2022 and 0.83 in 2019. However, it dropped to 0.77 in both 2021 and 2020. This suggests a mixed performance in utilizing its assets efficiently to generate revenue.
A lower total asset turnover ratio may indicate that Generac Holdings Inc is not effectively utilizing its assets to generate sales. The company may need to focus on improving its asset management efficiency, inventory turnover, or sales generation strategies to enhance this ratio in the future. Further analysis of operational and financial performance metrics would provide deeper insights into the factors driving these fluctuations in total asset turnover.
Peer comparison
Dec 31, 2023