Generac Holdings Inc (GNRC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 281,277 | 200,994 | 132,723 | 147,339 | 655,128 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 612,107 | 537,316 | 522,458 | 546,466 | 374,906 |
| Total current liabilities | US$ in thousands | 1,033,150 | 880,771 | 992,044 | 1,155,910 | 641,524 |
| Quick ratio | 0.86 | 0.84 | 0.66 | 0.60 | 1.61 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($281,277K
+ $—K
+ $612,107K)
÷ $1,033,150K
= 0.86
The quick ratio of Generac Holdings Inc has exhibited fluctuations over the past five years. As of December 31, 2020, the quick ratio stood at a healthy level of 1.61, indicating the company had sufficient liquid assets to cover its current liabilities. However, by December 31, 2021, the quick ratio had decreased significantly to 0.60, implying a potential liquidity challenge as current assets may no longer adequately cover short-term obligations.
Subsequently, there was a slight improvement in the quick ratio to 0.66 by December 31, 2022, suggesting a partial recovery in the company's liquidity position. This positive trend continued into December 31, 2023, where the quick ratio further increased to 0.84, reflecting a more favorable liquidity position compared to the previous year.
As of the most recent data available, December 31, 2024, Generac Holdings Inc's quick ratio improved slightly to 0.86. While this indicates a modest enhancement in liquidity, it is important for the company to continue monitoring and managing its ability to meet short-term obligations effectively. Overall, the company has shown varying levels of liquidity over the years, highlighting the importance of maintaining a balance between current assets and liabilities to ensure financial stability.
Peer comparison
Dec 31, 2024