Generac Holdings Inc (GNRC)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.97 | 2.03 | 2.25 | 2.29 | 2.27 | 2.41 | 2.43 | 2.40 | 2.20 | 2.09 | 2.13 | 1.70 | 1.60 | 1.89 | 2.02 | 2.62 | 2.60 | 2.66 | 2.67 | 2.50 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,032,170K ÷ $1,033,150K
= 1.97
Generac Holdings Inc's current ratio has shown a fluctuating trend over the past five years. The ratio was consistently above 2 from March 2020 to December 2021, indicating a healthy liquidity position with more than enough current assets to cover its current liabilities. However, there was a noticeable decline in the current ratio from March 2021 to December 2021, dropping to 1.60. This could be a red flag signaling potential liquidity concerns or inefficient management of current assets and liabilities during this period.
From March 2022 onwards, the current ratio improved, reaching a peak of 2.43 in June 2023, suggesting a recovery in the company's liquidity position. However, it declined slightly to 1.97 by December 2024. Despite the fluctuations, the current ratio has generally remained above 2 in recent periods, indicating that Generac Holdings Inc has maintained a strong liquidity position overall. Investors and creditors may find this ratio analysis valuable in assessing the company's ability to meet its short-term obligations.
Peer comparison
Dec 31, 2024