Generac Holdings Inc (GNRC)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 536,742 | 489,696 | 425,848 | 408,585 | 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 |
| Total assets | US$ in thousands | 5,109,330 | 5,186,940 | 5,118,570 | 5,129,520 | 5,093,310 | 5,166,340 | 5,321,970 | 5,211,130 | 5,169,460 | 5,246,290 | 5,472,950 | 5,151,530 | 4,877,780 | 4,100,430 | 3,706,930 | 3,422,140 | 3,235,420 | 2,974,080 | 2,767,620 | 2,654,080 |
| Operating ROA | 10.51% | 9.44% | 8.32% | 7.97% | 7.58% | 6.63% | 6.11% | 8.75% | 10.96% | 12.10% | 13.17% | 13.33% | 14.78% | 17.48% | 18.85% | 17.69% | 14.81% | 13.87% | 13.10% | 13.71% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $536,742K ÷ $5,109,330K
= 10.51%
Generac Holdings Inc's operating return on assets (operating ROA) has shown fluctuating trends over the periods from March 31, 2020, to December 31, 2024. The operating ROA started at 13.71% on March 31, 2020, and generally showed a positive trend, reaching its peak at 18.85% on June 30, 2021. However, after that peak, the operating ROA experienced a gradual decline before stabilizing around 10-11% from September 30, 2023, to December 31, 2024.
This indicates that Generac Holdings Inc's ability to generate operating income from its assets increased initially, peaked in mid-2021, and then declined slightly but remained relatively stable at a lower level towards the end of the period under review. The decreasing trend in the latter half of the period suggests the company may be facing challenges in maximizing its operating efficiency and profitability relative to its asset base. Further analysis of the company's operational strategies may be needed to address this decline in operating ROA.
Peer comparison
Dec 31, 2024