Generac Holdings Inc (GNRC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,093,310 | 5,169,460 | 4,877,780 | 3,235,420 | 2,665,670 |
| Total stockholders’ equity | US$ in thousands | 2,340,250 | 2,257,380 | 2,213,770 | 1,390,290 | 1,032,380 |
| Financial leverage ratio | 2.18 | 2.29 | 2.20 | 2.33 | 2.58 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,093,310K ÷ $2,340,250K
= 2.18
The financial leverage ratio of Generac Holdings Inc has exhibited some fluctuations over the past five years. The ratio has ranged from 2.18 in 2023 to 2.58 in 2019, showing a general downward trend. A lower financial leverage ratio indicates a lower level of debt relative to equity, which may suggest a stronger financial position and lower financial risk. However, it is essential to consider the industry norms and specific circumstances of the company before drawing definitive conclusions about the implications of these changes in the financial leverage ratio. Further analysis and comparison with industry peers may provide additional insights into Generac Holdings Inc's capital structure and risk profile.
Peer comparison
Dec 31, 2023