Generac Holdings Inc (GNRC)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.97 | 2.27 | 2.20 | 1.60 | 2.60 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,032,170K ÷ $1,033,150K
= 1.97
The current ratio of Generac Holdings Inc has fluctuated over the past five years. As of December 31, 2020, the company's current ratio was 2.60, indicating a strong ability to cover its short-term obligations with current assets. However, by December 31, 2021, the current ratio decreased to 1.60, suggesting a potential strain on the company's liquidity and ability to meet its short-term liabilities.
Subsequently, the current ratio improved to 2.20 by December 31, 2022, signaling a better position in terms of liquidity. The ratio continued to increase to 2.27 as of December 31, 2023, indicating a further enhancement in the company's ability to pay off its short-term debts. However, there was a slight decline by December 31, 2024, with the current ratio standing at 1.97.
Overall, although there have been fluctuations in Generac Holdings Inc's current ratio, the company maintained a generally healthy liquidity position over the five-year period, with the ratios mostly above 1. This suggests that the company has had varying levels of ability to meet its short-term obligations using its current assets, with some periods showing stronger liquidity positions than others.
Peer comparison
Dec 31, 2024