Generac Holdings Inc (GNRC)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,949,805 | 3,935,365 | 3,962,145 | 4,264,295 | 4,525,680 | 4,543,520 | 4,405,498 | 4,039,517 | 3,712,928 | 3,406,940 | 3,165,481 | 2,792,968 | 2,460,119 | 2,289,969 | 2,187,141 | 2,179,689 | 2,172,908 | 2,145,380 | 2,104,640 | 2,055,791 |
| Total current assets | US$ in thousands | 1,997,690 | 2,167,050 | 2,273,050 | 2,185,770 | 2,182,350 | 2,313,270 | 2,491,310 | 2,125,400 | 1,848,460 | 1,923,570 | 1,692,530 | 1,857,610 | 1,669,730 | 1,480,340 | 1,297,110 | 1,208,720 | 1,195,830 | 1,137,430 | 1,051,710 | 1,062,800 |
| Total current liabilities | US$ in thousands | 880,771 | 900,094 | 936,827 | 910,342 | 992,044 | 1,105,130 | 1,172,180 | 1,253,160 | 1,155,910 | 1,018,010 | 836,249 | 710,265 | 641,524 | 556,258 | 486,720 | 483,016 | 497,064 | 476,016 | 480,363 | 515,979 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,949,805K ÷ ($1,997,690K – $880,771K)
= 3.54
Generac Holdings Inc's working capital turnover has shown fluctuations over the past eight quarters, ranging from a low of 3.01 in Q2 2023 to a high of 4.66 in Q1 2022. The working capital turnover indicates the efficiency of the company in managing its working capital to generate sales revenue.
A higher working capital turnover ratio typically suggests that the company is effectively utilizing its working capital to support sales activity. In this case, Generac's working capital turnover has generally been above 3, indicating that the company is efficient in converting its working capital into sales throughout the quarters.
However, the fluctuations in the ratio over the quarters may signify changes in the company's working capital management practices or sales performance. For instance, the drop in Q2 2023 compared to previous quarters could indicate potential challenges in managing working capital efficiently during that period.
Overall, Generac Holdings Inc's working capital turnover ratio reflects a generally efficient utilization of its working capital to support sales activities, with some variability observed over the quarters. Tracking this ratio over time can provide insights into the company's liquidity management and operational efficiency.
Peer comparison
Dec 31, 2023
See also:
Generac Holdings Inc Working Capital Turnover (Quarterly Data)