Generac Holdings Inc (GNRC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,340,250 | 2,363,910 | 2,419,280 | 2,339,160 | 2,257,380 | 2,318,530 | 2,418,880 | 2,308,130 | 2,213,770 | 1,782,070 | 1,655,900 | 1,524,730 | 1,390,290 | 1,230,190 | 1,097,730 | 1,023,640 | 1,032,380 | 934,264 | 865,940 | 804,420 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $214,606K ÷ $2,340,250K
= 9.17%
To analyze Generac Holdings Inc's Return on Equity (ROE) based on the provided data, we can observe the trend over the past eight quarters.
Generac's ROE has exhibited a declining trend over the quarters, starting at 21.06% in Q1 2022 and reaching its lowest point at 6.30% in Q2 2023. This downward trend suggests that the company's ability to generate profits from its shareholders' equity has weakened over time.
The highest ROE of 21.06% was recorded in Q1 2022, indicating a strong performance in utilizing shareholder equity to generate profits. However, this figure has gradually decreased in subsequent quarters, with the most recent figure of 8.68% in Q4 2023.
A declining ROE can indicate potential inefficiencies in the company's operations or a decrease in profitability relative to the amount of equity invested by shareholders. It is essential for investors and stakeholders to monitor this metric closely to assess the company's overall financial health and performance.
In summary, Generac Holdings Inc's ROE has seen a notable decrease over the past eight quarters, signaling a potential challenge in maintaining profitability relative to shareholder equity.
Peer comparison
Dec 31, 2023
See also:
Generac Holdings Inc Return on Equity (ROE) (Quarterly Data)