Generac Holdings Inc (GNRC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 316,315 | 214,606 | 399,502 | 550,494 | 350,576 |
| Total stockholders’ equity | US$ in thousands | 2,494,280 | 2,340,250 | 2,257,380 | 2,213,770 | 1,390,290 |
| ROE | 12.68% | 9.17% | 17.70% | 24.87% | 25.22% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $316,315K ÷ $2,494,280K
= 12.68%
Generac Holdings Inc's Return on Equity (ROE) has shown a declining trend over the past five years. Starting at 25.22% as of December 31, 2020, the ROE decreased to 24.87% by December 31, 2021, and further to 17.70% by December 31, 2022. This was followed by a notable drop to 9.17% by December 31, 2023, indicating a significant decrease in profitability relative to shareholders' equity. However, there was a slight improvement to 12.68% by December 31, 2024.
The declining trend in ROE could suggest challenges in effectively utilizing equity to generate profits for shareholders, highlighting potential inefficiencies in the company's operations or capital structure. It would be essential for Generac Holdings Inc to assess the factors contributing to this trend and implement strategic measures to improve ROE and enhance shareholder value in the future.
Peer comparison
Dec 31, 2024