Generac Holdings Inc (GNRC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.79% | 33.85% | 36.73% | 39.05% | 36.90% |
| Operating profit margin | 9.84% | 12.60% | 19.47% | 19.54% | 17.21% |
| Pretax margin | 7.33% | 11.10% | 18.51% | 18.33% | 14.77% |
| Net profit margin | 5.47% | 8.89% | 14.86% | 14.30% | 11.66% |
Generac Holdings Inc's profitability ratios have shown some fluctuations over the five-year period from 2019 to 2023. The Gross Profit Margin has been relatively stable, ranging from 33.34% to 36.39%, with a slight decrease in the most recent year to 33.94%. This indicates the company's ability to control its direct costs of goods sold.
The Operating Profit Margin has fluctuated more significantly, starting at 16.88% in 2019, increasing to 19.28% in 2020, and then declining to 9.61% in 2023. This indicates a decrease in operating efficiency or higher operating expenses in the most recent year.
The Pretax Margin has followed a similar trend to the Operating Profit Margin, with a decrease from 14.50% in 2019 to 7.22% in 2023. This suggests that the company's operating expenses or non-operating costs may have increased.
The Net Profit Margin has also shown fluctuations, starting at 11.49% in 2019, increasing to 14.27% in 2021, and then declining to 5.05% in 2023. This indicates that the company's bottom-line profitability has varied over the years.
Overall, the profitability ratios of Generac Holdings Inc show some inconsistencies in maintaining stable margins over the five-year period, which may warrant further investigation into the company's cost structures and operational efficiencies.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.58% | 10.96% | 14.78% | 14.81% | 13.96% |
| Return on assets (ROA) | 4.21% | 7.73% | 11.29% | 10.84% | 9.45% |
| Return on total capital | 10.21% | 15.27% | 23.21% | 21.69% | 19.35% |
| Return on equity (ROE) | 9.17% | 17.70% | 24.87% | 25.22% | 24.41% |
Generac Holdings Inc's profitability ratios show a declining trend over the years. The Operating Return on Assets (Operating ROA) has decreased from 15.22% in 2021 to 7.59% in 2023, indicating a decrease in the company's ability to generate operating income from its assets. The Return on Assets (ROA) has also shown a declining trend, dropping from 10.94% in 2021 to 3.99% in 2023, suggesting a decrease in overall profitability relative to total assets.
Similarly, the Return on Total Capital has decreased from 23.25% in 2021 to 9.88% in 2023, indicating a decrease in the company's ability to generate returns on its total invested capital. The Return on Equity (ROE) has also experienced a declining trend, decreasing from 24.09% in 2021 to 8.68% in 2023, demonstrating a decline in the company's ability to generate returns for its shareholders.
Overall, the declining trend in these profitability ratios may indicate challenges in Generac Holdings Inc's ability to efficiently utilize its assets and capital to generate profits for its shareholders. Further analysis and investigation into the company's financial performance and operational efficiency may be required to address these decreasing profitability trends.