Generac Holdings Inc (GNRC)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,434,820 | — | — | — | 1,370,970 | — | — | 210,000 | 882,060 | 782,925 | 781,950 | 832,075 | 833,990 | 829 | 813,400 | 798,875 | 832,236 | 881,198 | 879,000 | — |
| 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 |
| Debt-to-assets ratio | 0.28 | 0.00 | 0.00 | 0.00 | 0.27 | 0.00 | 0.00 | 0.04 | 0.18 | 0.19 | 0.21 | 0.24 | 0.26 | 0.00 | 0.29 | 0.30 | 0.31 | 0.34 | 0.35 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,434,820K ÷ $5,093,310K
= 0.28
Generac Holdings Inc's debt-to-assets ratio has shown consistency over the past eight quarters, ranging from 0.21 to 0.31. The ratio remained relatively stable around the 0.31 level in the most recent quarters of Q4 2023, Q3 2023, Q2 2023, and Q1 2023. This indicates that, on average, roughly 31% of the company's assets are financed by debt.
Comparing the current ratio levels to the same quarter of the previous year, there has been a gradual increase from 0.25 in Q2 2022 to 0.31 in Q4 2023. This suggests that Generac Holdings Inc may have taken on slightly more debt relative to its assets over this period.
A debt-to-assets ratio of 0.31 implies that the company relies moderately on debt financing, which can carry both advantages and risks. Investors and creditors may find this ratio favorable as it shows that a significant portion of the company's assets are funded by debt, indicating potential for higher returns. However, a higher ratio also implies higher financial risk and could impact the company's creditworthiness if not managed judiciously.
Overall, while Generac Holdings Inc's debt-to-assets ratio has remained relatively stable, it is essential for the company to continue monitoring and managing its debt levels to ensure a healthy balance between debt and assets in its capital structure.
Peer comparison
Dec 31, 2023