Generac Holdings Inc (GNRC)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,290,970 | 4,119,840 | 3,997,100 | 3,974,163 | 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 |
| Total current assets | US$ in thousands | 2,032,170 | 2,073,380 | 2,055,660 | 2,053,910 | 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 |
| Total current liabilities | US$ in thousands | 1,033,150 | 1,019,470 | 912,557 | 897,901 | 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 |
| Working capital turnover | 4.30 | 3.91 | 3.50 | 3.44 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,290,970K ÷ ($2,032,170K – $1,033,150K)
= 4.30
The working capital turnover ratio of Generac Holdings Inc has shown some fluctuations over the past few years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
From March 31, 2020, to June 30, 2020, the ratio decreased from 3.00 to 2.70, suggesting a slight decrease in the efficiency of working capital utilization. However, the ratio continued to decline, reaching 2.39 by December 31, 2020, indicating a further decrease in efficiency.
The trend reversed in the following periods, with the ratio increasing to 5.36 by December 31, 2021, showing a significant improvement in working capital management. The ratio remained relatively high through March 31, 2022, before decreasing slightly in the subsequent periods.
Overall, the working capital turnover ratio for Generac Holdings Inc fluctuated between 2.39 and 5.36 during the analyzed period. The company should aim to maintain a balance between efficient working capital management and sustaining sales growth to ensure long-term financial stability.
Peer comparison
Dec 31, 2024
See also:
Generac Holdings Inc Working Capital Turnover (Quarterly Data)