Generac Holdings Inc (GNRC)
Operating profit margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 386,199 | 342,459 | 325,206 | 456,078 | 566,330 | 634,583 | 720,639 | 686,747 | 721,136 | 716,709 | 698,767 | 605,368 | 479,106 | 412,560 | 362,479 | 363,852 | 372,163 | 376,503 | 377,466 | 372,007 |
| Revenue (ttm) | US$ in thousands | 3,949,805 | 3,935,365 | 3,962,145 | 4,264,295 | 4,525,680 | 4,543,520 | 4,405,498 | 4,039,517 | 3,712,928 | 3,406,940 | 3,165,481 | 2,792,968 | 2,460,119 | 2,289,969 | 2,187,141 | 2,179,689 | 2,172,908 | 2,145,380 | 2,104,640 | 2,055,791 |
| Operating profit margin | 9.78% | 8.70% | 8.21% | 10.70% | 12.51% | 13.97% | 16.36% | 17.00% | 19.42% | 21.04% | 22.07% | 21.67% | 19.47% | 18.02% | 16.57% | 16.69% | 17.13% | 17.55% | 17.93% | 18.10% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $386,199K ÷ $3,949,805K
= 9.78%
Generac Holdings Inc's operating profit margin has shown a declining trend over the past eight quarters, starting at 17.42% in Q1 2022 and decreasing to 9.61% in Q4 2023. This downward trend indicates a decreasing efficiency in generating profits from its core operations over time.
The company experienced a significant drop in operating profit margin from Q2 2022 to Q1 2023, falling from 16.73% to 10.60%. Although there was a slight increase in Q3 2023 to 8.58%, the margin remained relatively low compared to previous periods.
The operating profit margin is a key indicator of a company's operational efficiency and profitability. The downward trend in Generac's operating profit margin may suggest challenges in controlling operating expenses, declining sales prices, or other operational inefficiencies affecting the company's ability to generate profits. Management should closely monitor and address the factors contributing to the declining trend to improve the company's overall financial performance and sustainability.
Peer comparison
Dec 31, 2023
See also:
Generac Holdings Inc Operating Profit Margin (Quarterly Data)