Generac Holdings Inc (GNRC)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 34.57% | 33.54% | 32.94% | 33.62% | 33.63% | 33.92% | 34.42% | 34.63% | 36.63% | 38.09% | 39.11% | 39.64% | 38.93% | 38.41% | 37.54% | 37.06% | 36.71% | 36.35% | 36.24% | 36.25% |
| 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% |
| Pretax margin | 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% | 14.69% | 15.47% | 15.78% | 15.71% |
| Net profit margin | 5.43% | 4.80% | 4.72% | 6.99% | 8.83% | 10.37% | 12.36% | 12.76% | 14.83% | 15.63% | 16.30% | 16.29% | 14.25% | 12.89% | 11.70% | 11.54% | 11.60% | 12.02% | 12.27% | 12.14% |
Generac Holdings Inc's profitability ratios have shown a declining trend over the past eight quarters. The gross profit margin has decreased from 34.41% in Q1 2022 to 32.93% in Q3 2023, indicating a decline in the company's ability to generate profits from its revenue after accounting for the cost of goods sold.
Similarly, the operating profit margin has also witnessed a downward trend, falling from 17.42% in Q1 2022 to 8.58% in Q3 2023. This indicates that the company's ability to generate profits from its core operations has weakened over time.
The pretax margin and net profit margin have also shown a decreasing pattern. The pretax margin has declined from 16.03% in Q1 2022 to 6.26% in Q3 2023, while the net profit margin has decreased from 11.96% in Q1 2022 to 3.98% in Q3 2023. This suggests that Generac Holdings Inc's overall profitability and efficiency in turning revenue into net income have weakened over the quarters analyzed.
Overall, the declining trend in profitability ratios for Generac Holdings Inc indicates potential challenges in managing costs, maintaining pricing power, or optimizing operational efficiency, which may warrant further investigation and strategic action to improve the company's financial performance.
Return on investment
| 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 return on assets (Operating ROA) | 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% | 13.96% | 14.51% | 14.96% | 15.04% |
| Return on assets (ROA) | 4.21% | 3.66% | 3.51% | 5.72% | 7.73% | 8.99% | 9.95% | 10.00% | 11.29% | 12.99% | 13.92% | 13.30% | 10.84% | 9.93% | 9.24% | 9.48% | 9.45% | 9.94% | 10.23% | 10.08% |
| Return on total capital | 10.21% | 14.30% | 13.19% | 19.03% | 15.27% | 26.86% | 29.34% | 26.94% | 23.21% | 27.96% | 28.72% | 25.95% | 21.69% | 32.80% | 18.58% | 19.41% | 19.35% | 20.56% | 21.35% | 45.25% |
| Return on equity (ROE) | 9.17% | 8.00% | 7.73% | 12.74% | 17.70% | 20.33% | 22.52% | 22.33% | 24.87% | 29.89% | 31.16% | 29.85% | 25.22% | 24.00% | 23.30% | 24.58% | 24.41% | 27.61% | 29.81% | 31.01% |
Generac Holdings Inc's profitability ratios have shown a decreasing trend over the quarters presented. The Operating return on assets (Operating ROA) has declined from 13.75% in Q1 2022 to 7.59% in Q4 2023, indicating a decrease in the company's operating efficiency in generating profits from its assets. Similarly, the Return on assets (ROA) has decreased from 9.44% in Q1 2022 to 3.99% in Q4 2023, reflecting a decline in overall profitability.
Return on total capital has also shown a downward trend, declining from 20.83% in Q1 2022 to 9.88% in Q4 2023, suggesting a decrease in the company's ability to generate returns from its total capital employed. The Return on equity (ROE) has followed a similar pattern, dropping from 21.06% in Q1 2022 to 8.68% in Q4 2023, indicating a decrease in the profitability of equity investments.
Overall, the decreasing trend in Generac Holdings Inc's profitability ratios over the quarters highlights a potential decline in the company's financial performance and efficiency in utilizing its assets and capital to generate profits. Further analysis and investigation may be warranted to understand the factors contributing to this decline and to formulate appropriate strategies for improvement.