Generac Holdings Inc (GNRC)
Debt-to-equity 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-equity ratio | 0.61 | 0.61 | 0.40 | 0.60 | 0.81 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,434,820K ÷ $2,340,250K
= 0.61
Generac Holdings Inc's debt-to-equity ratio has been fluctuating over the past five years. In 2021, the ratio was relatively low at 0.44, indicating that the company had lower debt compared to its equity. This could suggest a conservative capital structure and lower financial risk.
However, in 2019, the ratio was higher at 0.87, signaling a higher level of debt relative to equity. This could have indicated higher financial leverage and potentially greater financial risk.
In 2020, there was a slight increase in the debt-to-equity ratio to 0.64, and then again a further increase to 0.63 in 2022. This suggests that the company may have taken on more debt compared to equity during these years, potentially for financing growth or other strategic initiatives.
The ratio increased to 0.67 in 2023, indicating a moderate level of debt compared to equity. Overall, the trend in Generac Holdings Inc's debt-to-equity ratio shows variability over the years, reflecting changes in the company's financing decisions and capital structure. Further analysis and consideration of the company's overall financial health and strategy would be needed to fully interpret the implications of these fluctuations.
Peer comparison
Dec 31, 2023