Generac Holdings Inc (GNRC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 200,994 | 132,723 | 147,339 | 655,128 | 322,883 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 537,316 | 522,458 | 546,466 | 374,906 | 319,538 |
| Total current liabilities | US$ in thousands | 880,771 | 992,044 | 1,155,910 | 641,524 | 497,064 |
| Quick ratio | 0.84 | 0.66 | 0.60 | 1.61 | 1.29 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($200,994K
+ $—K
+ $537,316K)
÷ $880,771K
= 0.84
The quick ratio of Generac Holdings Inc has fluctuated over the past five years. In 2023, the quick ratio stood at 0.94, which is an improvement compared to the previous year when it was 0.78. This signifies that the company's ability to meet its short-term obligations with its most liquid assets has strengthened in the latest fiscal year.
When looking at the trend over the five-year period, the quick ratio was relatively low in 2021 at 0.66, indicating a potential liquidity challenge during that year. However, there was a significant improvement in 2020 when the quick ratio spiked to 1.66, reflecting a strong ability to cover short-term liabilities with readily available assets. In 2019, the quick ratio was 1.36, indicating a slightly lower liquidity position compared to 2020.
Overall, the fluctuation in Generac Holdings Inc's quick ratio suggests varying levels of liquidity risk over the years. It is important for the company to maintain a healthy quick ratio to ensure it can comfortably meet its short-term financial obligations.
Peer comparison
Dec 31, 2023