Generac Holdings Inc (GNRC)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 536,742 | 386,199 | 566,330 | 721,136 | 479,106 |
| Total assets | US$ in thousands | 5,109,330 | 5,093,310 | 5,169,460 | 4,877,780 | 3,235,420 |
| Operating ROA | 10.51% | 7.58% | 10.96% | 14.78% | 14.81% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $536,742K ÷ $5,109,330K
= 10.51%
Generac Holdings Inc's operating return on assets (ROA) has shown fluctuations over the years. As of December 31, 2020, the operating ROA was relatively strong at 14.81%, indicating that the company generated $0.1481 in operating income for every $1 of assets. However, there was a slight decrease in the operating ROA to 14.78% by December 31, 2021.
Subsequently, there was a notable decline in the operating ROA to 10.96% by December 31, 2022, reflecting potential challenges in efficiently utilizing assets to generate operating income. The trend continued as the operating ROA further dropped to 7.58% by December 31, 2023, suggesting a decreasing ability to generate operating profits relative to the assets employed.
However, there was a slight improvement in the operating ROA to 10.51% by December 31, 2024. Despite the increase, the operating ROA remained below the levels seen in the earlier years, indicating that there may still be room for improvement in asset utilization efficiency to enhance operating profitability.
Overall, the analysis of Generac Holdings Inc's operating ROA highlights the importance of effectively managing assets to optimize operating income generation and profitability.
Peer comparison
Dec 31, 2024