Generac Holdings Inc (GNRC)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 385,413 | 553,924 | 718,404 | 482,540 | 360,850 |
| Interest expense | US$ in thousands | 97,627 | 54,826 | 32,953 | 32,991 | 41,544 |
| Interest coverage | 3.95 | 10.10 | 21.80 | 14.63 | 8.69 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $385,413K ÷ $97,627K
= 3.95
Generac Holdings Inc's interest coverage ratio has exhibited fluctuations over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating income.
In 2023, the interest coverage ratio was 3.96, indicating that the company's operating income was able to cover its interest expenses approximately 3.96 times. This represents a decline from the previous year, where the ratio was 10.36.
Looking back further, in 2021, Generac had a very strong interest coverage ratio of 22.54, reflecting a robust ability to cover its interest payments. The ratio decreased from the peak in 2021, but it still remained healthy in 2023.
In 2020 and 2019, the interest coverage ratios were 14.52 and 8.96 respectively, showing a fluctuating trend in the company's ability to cover its interest expenses over the years.
Overall, while the interest coverage ratio decreased in 2023 compared to the previous year, Generac Holdings Inc has generally exhibited a solid ability to meet its interest obligations over the past five years, with some fluctuations in the trend.
Peer comparison
Dec 31, 2023