Generac Holdings Inc (GNRC)
Working capital 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 |
| Total current assets | US$ in thousands | 2,032,170 | 1,997,690 | 2,182,350 | 1,848,460 | 1,669,730 |
| Total current liabilities | US$ in thousands | 1,033,150 | 880,771 | 992,044 | 1,155,910 | 641,524 |
| Working capital turnover | 4.30 | 3.51 | 3.78 | 5.35 | 2.38 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,290,970K ÷ ($2,032,170K – $1,033,150K)
= 4.30
Generac Holdings Inc's working capital turnover has shown fluctuating trends over the years. In December 31, 2020, the ratio was 2.38, indicating that the company generated $2.38 in revenue for each dollar of working capital invested. This ratio increased significantly to 5.35 by December 31, 2021, suggesting improved efficiency in utilizing working capital to generate sales.
However, the ratio declined to 3.78 by December 31, 2022, and further to 3.51 by December 31, 2023, indicating a decrease in the company's ability to generate revenue from its working capital. The working capital turnover ratio then improved to 4.30 by December 31, 2024, but remained below the peak level seen in 2021.
Overall, the fluctuating trend in Generac Holdings Inc's working capital turnover ratio suggests varying levels of efficiency in utilizing working capital to generate sales over the years, indicating the need for continuous monitoring and management of the company's working capital efficiency.
Peer comparison
Dec 31, 2024