Generac Holdings Inc (GNRC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,434,820 | 1,370,970 | 882,060 | 833,990 | 832,236 |
| Total stockholders’ equity | US$ in thousands | 2,340,250 | 2,257,380 | 2,213,770 | 1,390,290 | 1,032,380 |
| Debt-to-capital ratio | 0.38 | 0.38 | 0.28 | 0.37 | 0.45 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,434,820K ÷ ($1,434,820K + $2,340,250K)
= 0.38
Generac Holdings Inc's debt-to-capital ratio has fluctuated over the past five years. The ratio stood at 0.47 at the end of 2019, indicating that the company's debt represented 47% of its total capital at that time. Subsequently, there was a decrease in the ratio, reaching 0.31 in 2021, suggesting a lower reliance on debt to finance its operations compared to the previous year. However, in 2022, the ratio increased to 0.39 before rising again to 0.40 in 2023.
Overall, Generac Holdings Inc's debt-to-capital ratio has shown some variability, with debt levels relative to total capital fluctuating within a certain range. It is essential for investors and analysts to monitor this ratio over time to assess the company's financial leverage and risk management strategies.
Peer comparison
Dec 31, 2023