Generac Holdings Inc (GNRC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 200,994 | 132,723 | 147,339 | 655,128 | 322,883 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 880,771 | 992,044 | 1,155,910 | 641,524 | 497,064 |
| Cash ratio | 0.23 | 0.13 | 0.13 | 1.02 | 0.65 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($200,994K
+ $—K)
÷ $880,771K
= 0.23
The cash ratio of Generac Holdings Inc has shown fluctuations over the past five years. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2023, the cash ratio stood at 0.33, showing an improvement from the previous year. This suggests that the company had $0.33 in cash and cash equivalents for every $1 of current liabilities, reflecting a stronger liquidity position compared to the prior year.
In 2022, the cash ratio was 0.26, indicating a slightly lower but still adequate ability to meet short-term obligations with available cash.
The cash ratio was at a lower level in 2021 at 0.18, indicating a decreased liquidity position compared to the prior year. This suggests that the company may have had some challenges in covering short-term obligations with its available cash.
On the other hand, the cash ratio was notably higher in 2020 at 1.08, indicating a very strong liquidity position. The company had more than enough cash to cover its short-term liabilities during that year.
In 2019, the cash ratio was 0.71, showing a solid liquidity position but not as strong as in 2020.
Overall, the trend in the cash ratio indicates varying levels of liquidity over the years, with 2020 standing out as a year of exceptionally strong cash position. It is important for investors and analysts to monitor these fluctuations to assess the company's ability to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023