Generac Holdings Inc (GNRC)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 214,606 | 189,020 | 186,913 | 298,074 | 399,502 | 471,382 | 544,682 | 515,359 | 550,494 | 532,600 | 516,000 | 455,109 | 350,576 | 295,189 | 255,793 | 251,606 | 252,007 | 257,968 | 258,170 | 249,473 |
| Total assets | US$ in thousands | 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 | 2,665,670 | 2,594,120 | 2,523,110 | 2,473,720 |
| 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% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $214,606K ÷ $5,093,310K
= 4.21%
Generac Holdings Inc's return on assets (ROA) has been declining over the past eight quarters. In Q4 2023, the ROA was 3.99%, which was a decrease from the previous quarter's 3.09%. This downward trend in ROA indicates that the company may be becoming less effective at generating profits from its assets.
Comparing Q4 2023 to the same period in the prior year (Q4 2022), there is a substantial decrease in ROA from 6.78% to 3.99%. This significant drop suggests that Generac Holdings Inc's ability to utilize its assets to generate profit has weakened over the year.
Looking at the broader trend, Generac's ROA has been on a steady decline since Q1 2022 when it was at its peak of 9.44%. This consistent decrease in ROA over multiple quarters highlights potential inefficiencies in the company's asset utilization and profitability.
Overall, Generac Holdings Inc's decreasing ROA over the past eight quarters signals a concerning trend that may require further analysis to identify underlying issues and potential areas for improvement.
Peer comparison
Dec 31, 2023
See also:
Generac Holdings Inc Return on Assets (ROA) (Quarterly Data)