Generac Holdings Inc (GNRC)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,211,250 | 1,434,820 | 1,370,970 | 882,060 | 833,990 |
| Total assets | US$ in thousands | 5,109,330 | 5,093,310 | 5,169,460 | 4,877,780 | 3,235,420 |
| Debt-to-assets ratio | 0.24 | 0.28 | 0.27 | 0.18 | 0.26 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,211,250K ÷ $5,109,330K
= 0.24
Based on the provided data, Generac Holdings Inc has shown fluctuating trends in its debt-to-assets ratio over the past five years. The ratio decreased from 0.26 on December 31, 2020, to 0.18 on December 31, 2021, indicating a reduction in the proportion of total assets financed by debt during that period.
However, the ratio increased in the subsequent years, reaching 0.27 on December 31, 2022, 0.28 on December 31, 2023, and then slightly decreased to 0.24 on December 31, 2024. These variations suggest changes in the company's capital structure and debt management practices over the years.
Overall, Generac Holdings Inc has maintained a relatively conservative level of debt in relation to its assets, as the debt-to-assets ratio has generally remained below 0.3 during the period under review. The company's ability to sustain a lower debt-to-assets ratio may indicate a lower financial risk and a stronger financial position in managing its debt obligations relative to its total assets.
Peer comparison
Dec 31, 2024