Generac Holdings Inc (GNRC)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 386,199 | 566,330 | 721,136 | 479,106 | 372,163 |
| Revenue | US$ in thousands | 3,925,040 | 4,496,170 | 3,703,400 | 2,452,210 | 2,161,870 |
| Operating profit margin | 9.84% | 12.60% | 19.47% | 19.54% | 17.21% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $386,199K ÷ $3,925,040K
= 9.84%
Generac Holdings Inc's operating profit margin has shown a declining trend over the past five years. The margin decreased from 16.88% in 2019 to 9.61% in 2023. This downward trajectory indicates a decreasing efficiency in generating profits from its core operations. The company experienced its highest operating profit margin in 2021 at 19.87% but then saw a significant drop in the following years. The declining trend in the operating profit margin suggests potential challenges in managing costs, pricing strategies, or revenue generation efficiency. Further analysis of the company's cost structure and revenue streams may be necessary to address the decreasing trend and improve profitability in the future.
Peer comparison
Dec 31, 2023