Generac Holdings Inc (GNRC)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 5,093,310 | 5,169,460 | 4,877,780 | 3,235,420 | 2,665,670 |
| Operating ROA | 7.58% | 10.96% | 14.78% | 14.81% | 13.96% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $386,199K ÷ $5,093,310K
= 7.58%
Generac Holdings Inc's operating return on assets (ROA) has experienced a declining trend over the past five years, from 13.96% in 2019 to 7.59% in 2023. This indicates that the company's ability to generate operating income relative to its total assets has weakened over the period.
A decreasing operating ROA could suggest inefficiencies in the utilization of assets to generate operating profits. This may be a concern for investors and stakeholders as it indicates a potential decline in the company's operational efficiency and profitability.
Further analysis and investigation into the factors influencing the decline in operating ROA, such as changes in operating income or total assets, would be necessary to fully understand the reasons behind the trend and to identify potential areas for improvement in Generac Holdings Inc's operations.
Peer comparison
Dec 31, 2023