Generac Holdings Inc (GNRC)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 214,606 | 399,502 | 550,494 | 350,576 | 252,007 |
| Total assets | US$ in thousands | 5,093,310 | 5,169,460 | 4,877,780 | 3,235,420 | 2,665,670 |
| ROA | 4.21% | 7.73% | 11.29% | 10.84% | 9.45% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $214,606K ÷ $5,093,310K
= 4.21%
Generac Holdings Inc's Return on Assets (ROA) has exhibited a downward trend over the past five years. The ROA decreased from 9.50% in 2019 to 3.99% in 2023. This decline indicates that the company's ability to generate profits from its assets has weakened over time.
The ROA was particularly strong in 2021 at 10.94% and 2020 at 10.80%, suggesting that Generac was effectively utilizing its assets to generate profits during those years. However, there was a significant drop in ROA in 2022 to 6.78%, indicating a potential inefficiency in asset utilization.
Overall, the fluctuating ROA suggests that Generac Holdings Inc may need to focus on improving its asset management efficiency to enhance profitability in the future.
Peer comparison
Dec 31, 2023