Generac Holdings Inc (GNRC)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 408,775 | 390,810 | 323,420 | 305,772 | 287,786 | 245,772 | 235,831 | 376,911 | 499,098 | 578,026 | 672,343 | 643,556 | 685,451 | 685,947 | 668,786 | 580,006 | 449,549 | 368,579 | 317,197 | 313,364 |
| Revenue (ttm) | US$ in thousands | 4,290,970 | 4,119,840 | 3,997,100 | 3,974,163 | 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 |
| Pretax margin | 9.53% | 9.49% | 8.09% | 7.69% | 7.29% | 6.25% | 5.95% | 8.84% | 11.03% | 12.72% | 15.26% | 15.93% | 18.46% | 20.13% | 21.13% | 20.77% | 18.27% | 16.10% | 14.50% | 14.38% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $408,775K ÷ $4,290,970K
= 9.53%
Generac Holdings Inc's pretax margin has displayed fluctuations over the past few years. From March 31, 2020, to June 30, 2021, the pretax margin showed a consistent upward trend, reaching a peak of 21.13% in June 2021. However, starting from September 30, 2021, there was a gradual decline in the pretax margin, dropping to 9.53% by December 31, 2024.
The pretax margin indicates the company's efficiency in generating profits before accounting for taxes on its income. The decreasing trend in pretax margin after June 2021 could signify factors affecting the company's profitability, such as increased operating expenses, changes in pricing strategies, or variations in sales volume.
It is essential for Generac Holdings Inc to analyze the underlying reasons for the decline in pretax margin to identify potential areas for improvement and strategic adjustments. Monitoring and managing the pretax margin closely can help the company maintain financial health and sustainable profitability in the long run.
Peer comparison
Dec 31, 2024