Generac Holdings Inc (GNRC)
Working capital 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 current assets | US$ in thousands | 1,997,690 | 2,182,350 | 1,848,460 | 1,669,730 | 1,195,830 |
| Total current liabilities | US$ in thousands | 880,771 | 992,044 | 1,155,910 | 641,524 | 497,064 |
| Working capital turnover | 3.51 | 3.78 | 5.35 | 2.38 | 3.09 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,925,040K ÷ ($1,997,690K – $880,771K)
= 3.51
Generac Holdings Inc's working capital turnover has fluctuated over the past five years. The ratio ranged from 2.42 in 2020 to 5.40 in 2021, showing a significant increase in 2021. This increase indicates that the company efficiently utilized its working capital to generate revenue in 2021. However, the ratio decreased to 3.83 in 2022 and further to 3.60 in 2023, suggesting a decline in the efficiency of working capital utilization in those years compared to 2021. Overall, the company has shown varying efficiency in managing its working capital over the period under review.
Peer comparison
Dec 31, 2023