Generac Holdings Inc (GNRC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.31 | 0.34 | 0.35 | 0.00 |
| Debt-to-capital ratio | 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 | 0.45 | 0.49 | 0.50 | 0.00 |
| Debt-to-equity ratio | 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 | 0.81 | 0.94 | 1.02 | 0.00 |
| 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 |
Generac Holdings Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable around 0.31 in the most recent quarters, indicating that approximately 31% of the company's assets are funded by debt. This suggests a healthy balance between debt and assets.
Similarly, the debt-to-capital ratio has also shown consistency around 0.40, implying that 40% of Generac's capital structure consists of debt. The stability in this ratio demonstrates a consistent financing mix between debt and equity.
The debt-to-equity ratio has fluctuated slightly, but generally remained within a reasonable range. The ratio has ranged from 0.47 to 0.69 over the past eight quarters, indicating that the company is effectively leveraging its equity to fund its operations.
The financial leverage ratio has shown some variability but has generally been above 2.0, indicating that the company relies more on debt to finance its operations. However, the ratio has not significantly exceeded past levels, suggesting that Generac has maintained a manageable level of financial leverage.
Overall, Generac Holdings Inc's solvency ratios suggest a reasonably balanced capital structure with a manageable level of debt relative to assets, capital, and equity. The company appears to have maintained stability in its solvency position over the analyzed quarters.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 8.69 | 9.01 | 9.19 | 8.85 |
Generac Holdings Inc's interest coverage ratio has shown a decreasing trend over the quarters, indicating a decline in its ability to cover their interest expenses with operating income. The interest coverage ratio was relatively high in Q1 2022 at 20.36, suggesting a strong ability to meet interest payments. However, it decreased significantly to 3.96 in Q4 2023, reflecting a potential strain on the company's finances to cover interest costs. The decreasing trend in the interest coverage ratio may raise concerns about Generac Holdings Inc's financial health and ability to service its debt obligations. Further analysis of the company's financial performance and debt structure is recommended to fully understand the reasons behind this trend and evaluate the company's overall financial health.