Generac Holdings Inc (GNRC)
Debt-to-capital 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 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 |
| Debt-to-capital ratio | 0.38 | 0.00 | 0.00 | 0.00 | 0.38 | 0.00 | 0.00 | 0.08 | 0.28 | 0.31 | 0.32 | 0.35 | 0.37 | 0.00 | 0.43 | 0.44 | 0.45 | 0.49 | 0.50 | 0.00 |
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
The debt-to-capital ratio of Generac Holdings Inc has been relatively stable over the past eight quarters, fluctuating within a narrow range between 0.32 and 0.41. This indicates that the company has maintained a moderate level of debt relative to its total capital structure during this period.
The ratio peaked at 0.41 in Q1 2023, which may suggest a slightly higher reliance on debt to finance its operations and investments at that time. However, it is noteworthy that the ratio quickly returned to the 0.40 range in the subsequent quarters.
Overall, the consistency in the debt-to-capital ratio implies a balanced approach by Generac Holdings Inc in managing its debt levels in relation to its equity. It is important to continue monitoring this ratio to ensure the company's financial stability and sustainability in the long run.
Peer comparison
Dec 31, 2023