Analysis of Debt
Total Debt (Carrying Amount)
Generac Holdings Inc., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
The total carrying amount of borrowings and finance lease obligations exhibited a period of moderate decline from 2017 to 2020, followed by a significant increase in 2021. Total debt obligations decreased from $928.7 million in 2017 to $885.2 million in 2020, before climbing to a peak of $980.1 million by the end of 2021. This pattern indicates a period of debt stabilization followed by a recent expansion of total leverage.
- Short-term Borrowings
- A volatile but overall upward trend is observed in short-term liquidity obligations. Borrowings increased from $20.6 million in 2017 to $72.0 million in 2021, with a notable peak in the final year of the analyzed period, suggesting an increased reliance on short-term financing.
- Long-term Borrowings and Finance Lease Obligations
- Long-term obligations constitute the primary component of the total debt structure. These obligations experienced a gradual reduction from $906.5 million in 2017 to a low of $837.8 million in 2019, before returning to $902.1 million in 2021.
- Current Portion of Long-term Obligations
- The current portion of long-term borrowings and finance lease obligations demonstrated a consistent and linear increase throughout the five-year period. The amount grew steadily from $1.6 million in 2017 to $5.9 million in 2021, indicating a rising volume of long-term debt maturing in the short term.
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Total Debt (Fair Value)
| Dec 31, 2021 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| ABL facility | 100,000) |
| Other lines of credit | 72,035) |
| Term loan | 782,925) |
| Other borrowings | 727) |
| Finance lease obligation | 39,175) |
| Total borrowings and finance lease obligation (fair value) | 994,862) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.02 |
Based on: 10-K (reporting date: 2021-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 7.43%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 7.43% | 39,175) | 2,911) | |
| Total | 39,175) | 2,911) | |
| 7.43% | |||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 2,911 ÷ 39,175 = 7.43%