Generac Holdings Inc (GNRC)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 2.18 | 2.19 | 2.20 | 2.23 | 2.29 | 2.26 | 2.26 | 2.23 | 2.20 | 2.30 | 2.24 | 2.24 | 2.33 | 2.42 | 2.52 | 2.59 | 2.58 | 2.78 | 2.91 | 3.08 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,093,310K ÷ $2,340,250K
= 2.18
Generac Holdings Inc has maintained a relatively stable financial leverage ratio over the past eight quarters, ranging from 2.18 to 2.29. The financial leverage ratio measures the proportion of a company's total assets that are financed by debt, indicating the company's reliance on borrowed funds.
A financial leverage ratio above 1 implies that the company has more debt than equity in its capital structure. Generac Holdings Inc's ratios consistently above 2 indicate a significant presence of debt in its capital structure. A higher financial leverage ratio suggests a higher level of financial risk for the company, as it indicates a greater reliance on debt financing which could lead to higher interest payments and potential financial distress in case of economic downturns or adverse business conditions.
It is important for stakeholders to monitor changes in Generac Holdings Inc's financial leverage ratio over time to assess the company's ability to manage its debt levels effectively and maintain financial stability. Additionally, comparing the company's financial leverage ratio with industry peers or benchmarks can provide valuable insights into its capital structure and risk profile.
Peer comparison
Dec 31, 2023