Generac Holdings Inc (GNRC)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.24 | 0.26 | 0.28 | 0.28 | 0.28 | 0.00 | 0.00 | 0.00 | 0.27 | 0.00 | 0.00 | 0.04 | 0.18 | 0.19 | 0.21 | 0.24 | 0.26 | 0.00 | 0.29 | 0.30 |
| Debt-to-capital ratio | 0.33 | 0.36 | 0.37 | 0.38 | 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 |
| Debt-to-equity ratio | 0.49 | 0.57 | 0.60 | 0.60 | 0.61 | 0.00 | 0.00 | 0.00 | 0.61 | 0.00 | 0.00 | 0.09 | 0.40 | 0.44 | 0.47 | 0.55 | 0.60 | 0.00 | 0.74 | 0.78 |
| Financial leverage ratio | 2.05 | 2.15 | 2.16 | 2.17 | 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 |
Generac Holdings Inc's solvency ratios demonstrate a consistent improvement in financial leverage and debt management over the periods examined. The Debt-to-assets ratio decreased steadily from 0.30 as of March 31, 2020, to 0.24 as of March 31, 2021, and further to 0.00, indicating the company had no debt relative to its total assets. Subsequently, the ratio fluctuated but generally remained low, ending at 0.28 as of December 31, 2024.
Similarly, the Debt-to-capital ratio exhibited a downward trend from 0.44 on March 31, 2020, to 0.28 on December 31, 2021, before a slight increase to 0.33 by December 31, 2024. The Debt-to-equity ratio also showed a decline from 0.78 on March 31, 2020, to 0.40 by December 31, 2021. The ratio then stabilized at around 0.60, indicating the company had moderate levels of debt relative to equity.
Furthermore, the Financial leverage ratio decreased from 2.59 on March 31, 2020, to 2.05 on December 31, 2024, reflecting a strengthening of the company's financial position and reduced reliance on debt financing. Overall, the solvency ratios suggest that Generac Holdings Inc effectively managed its debt levels and improved its financial structure throughout the period under review, enhancing its overall solvency and stability.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.56 | 5.13 | 4.36 | 4.11 | 3.95 | 3.66 | 3.83 | 6.52 | 10.10 | 13.89 | 19.03 | 19.50 | 21.80 | 22.89 | 22.27 | 19.32 | 14.63 | 11.47 | 9.39 | 8.77 |
Generac Holdings Inc's interest coverage has displayed a generally positive trend from March 2020 to December 2024. The interest coverage ratio has increased steadily from 8.77 in March 2020 to a peak of 22.89 in September 2021, indicating the company's ability to comfortably meet its interest obligations using its operating income.
After reaching the peak in September 2021, the interest coverage ratio began to decline gradually, reaching 5.56 in December 2024. This decline may signal a potential increase in the company's financial risk as the ability to cover interest payments with operating income has weakened.
The overall trend suggests that Generac Holdings Inc's financial health in terms of interest coverage has fluctuated, highlighting the importance of monitoring the company's ability to generate sufficient operating income to cover its interest expenses in the future.