Stock Analysis on Net
Stock Analysis on Net

Generac Holdings Inc. (NYSE:GNRC)

This company has been moved to the archive! The financial data has not been updated since August 8, 2022.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Generac Holdings Inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Federal 105,236 62,714 41,686 32,072 15,753
State 21,295 13,071 4,211 9,639 1,775
Foreign 10,536 1,974 2,660 4,546 4,585
Current 137,067 77,759 48,557 46,257 22,113
Federal 10,518 20,452 19,393 22,225 17,737
State (3,728) 1,243 1,390 1,910 4,026
Foreign (7,863) (1,197) (1,263) 479 (2,777)
Deferred (1,073) 20,498 19,520 24,614 18,986
Change in valuation allowance (1,037) 716 (778) (1,015) 2,454
Provision for income taxes 134,957 98,973 67,299 69,856 43,553

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).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Generac Holdings Inc. current increased from 2019 to 2020 and from 2020 to 2021.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Generac Holdings Inc. deferred increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Generac Holdings Inc. provision for income taxes increased from 2019 to 2020 and from 2020 to 2021.

Effective Income Tax Rate (EITR)

Generac Holdings Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
U.S. statutory tax rate 21.00% 21.00% 21.00% 21.00% 35.00%
State taxes 4.30% 4.30% 4.30% 4.70% 4.10%
State tax rate differential 0.00% 0.00% -1.00% 0.00% 0.00%
Research and development credits -1.00% -1.10% -0.80% -1.30% -1.40%
State credits -1.10% -1.50% -1.00% -1.00% -0.20%
Share-based compensation -3.80% -1.00% -0.60% -0.50% -1.40%
Nondeductible U.S. compensation 1.50% 0.00% 0.00% 0.00% 0.00%
Foreign tax deduction -1.50% 0.00% 0.00% 0.00% 0.00%
Foreign deferred tax rate change 1.20% 0.00% 0.00% 0.00% 0.00%
Other -1.10% 0.50% -0.80% -0.20% -0.90%
Effective tax rate, before Tax Act impact 19.50% 22.20% 21.10% 22.70% 35.20%
Tax Act impact 0.00% 0.00% 0.00% -0.20% -13.90%
Effective tax rate 19.50% 22.20% 21.10% 22.50% 21.30%

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).

Item Description The company
Effective tax rate, before Tax Act impact Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Generac Holdings Inc. effective tax rate, before Tax Act impact increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Components of Deferred Tax Assets and Liabilities

Generac Holdings Inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Accrued expenses 37,797 24,358 21,053 16,745 15,138
Deferred revenue 27,003 15,851 14,697 12,418 8,060
Inventories 14,907 11,795 9,879 8,500 7,933
Pension obligations — — — 1,062 3,795
Stock-based compensation 10,202 8,348 7,490 5,960 5,522
Operating loss and credit carryforwards 68,368 31,275 28,356 25,585 23,771
Bad debt 1,253 1,633 1,094 1,363 —
Other 12,203 8,558 4,275 2,516 1,064
Deferred tax assets, before valuation allowance 171,733 101,818 86,844 74,149 65,283
Valuation allowance (7,874) (5,740) (5,024) (5,802) (6,817)
Deferred tax assets 163,859 96,078 81,820 68,347 58,466
Goodwill and intangible assets (328,162) (171,831) (142,159) (108,899) (70,556)
Depreciation (21,340) (33,716) (27,864) (25,429) (22,563)
Debt refinancing costs (2,916) (3,544) (4,119) (4,206) (5,189)
Prepaid expenses (1,664) (1,259) (1,073) (950) (709)
Deferred tax liabilities (354,082) (210,350) (175,215) (139,484) (99,017)
Net deferred tax assets (liabilities) (190,223) (114,272) (93,395) (71,137) (40,551)

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).

Item Description The company
Deferred tax assets, before valuation allowance Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Generac Holdings Inc. deferred tax assets, before valuation allowance increased from 2019 to 2020 and from 2020 to 2021.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Generac Holdings Inc. deferred tax assets increased from 2019 to 2020 and from 2020 to 2021.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Generac Holdings Inc. net deferred tax assets (liabilities) decreased from 2019 to 2020 and from 2020 to 2021.

Deferred Tax Assets and Liabilities, Classification

Generac Holdings Inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Deferred tax assets 15,740 1,497 2,933 163 3,238
Deferred tax liabilities 205,964 115,769 96,328 71,300 43,789

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).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Generac Holdings Inc. deferred tax assets decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Generac Holdings Inc. deferred tax liabilities increased from 2019 to 2020 and from 2020 to 2021.

Adjustments to Financial Statements: Removal of Deferred Taxes

Generac Holdings Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 4,877,780 3,235,423 2,665,669 2,426,314 2,019,964
Less: Noncurrent deferred tax assets, net 15,740 1,497 2,933 163 3,238
Total assets (adjusted) 4,862,040 3,233,926 2,662,736 2,426,151 2,016,726
Adjustment to Total Liabilities
Total liabilities (as reported) 2,605,643 1,779,012 1,571,591 1,604,049 1,416,204
Less: Noncurrent deferred tax liabilities, net 205,964 115,769 96,328 71,300 43,789
Total liabilities (adjusted) 2,399,679 1,663,243 1,475,263 1,532,749 1,372,415
Adjustment to Stockholders’ Equity Attributable To Generac Holdings Inc.
Stockholders’ equity attributable to Generac Holdings Inc. (as reported) 2,213,774 1,390,293 1,032,382 760,549 559,552
Less: Net deferred tax assets (liabilities) (190,223) (114,272) (93,395) (71,137) (40,551)
Stockholders’ equity attributable to Generac Holdings Inc. (adjusted) 2,403,997 1,504,565 1,125,777 831,686 600,103
Adjustment to Net Income Attributable To Generac Holdings Inc.
Net income attributable to Generac Holdings Inc. (as reported) 550,494 350,576 252,007 238,257 159,386
Add: Deferred income tax expense (benefit) (1,073) 20,498 19,520 24,614 18,986
Net income attributable to Generac Holdings Inc. (adjusted) 549,421 371,074 271,527 262,871 178,372

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).

Generac Holdings Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Generac Holdings Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 14.73% 14.11% 11.43% 11.77% 9.53%
Adjusted net profit margin 14.70% 14.93% 12.32% 12.99% 10.67%
Total Asset Turnover
Reported total asset turnover 0.77 0.77 0.83 0.83 0.83
Adjusted total asset turnover 0.77 0.77 0.83 0.83 0.83
Financial Leverage
Reported financial leverage 2.20 2.33 2.58 3.19 3.61
Adjusted financial leverage 2.02 2.15 2.37 2.92 3.36
Return on Equity (ROE)
Reported ROE 24.87% 25.22% 24.41% 31.33% 28.48%
Adjusted ROE 22.85% 24.66% 24.12% 31.61% 29.72%
Return on Assets (ROA)
Reported ROA 11.29% 10.84% 9.45% 9.82% 7.89%
Adjusted ROA 11.30% 11.47% 10.20% 10.83% 8.84%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Generac Holdings Inc. adjusted net profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Generac Holdings Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Generac Holdings Inc. adjusted financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Generac Holdings Inc. adjusted ROE improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Generac Holdings Inc. adjusted ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Generac Holdings Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Generac Holdings Inc. 550,494 350,576 252,007 238,257 159,386
Net sales 3,737,184 2,485,200 2,204,336 2,023,464 1,672,445
Profitability Ratio
Net profit margin1 14.73% 14.11% 11.43% 11.77% 9.53%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Generac Holdings Inc. 549,421 371,074 271,527 262,871 178,372
Net sales 3,737,184 2,485,200 2,204,336 2,023,464 1,672,445
Profitability Ratio
Adjusted net profit margin2 14.70% 14.93% 12.32% 12.99% 10.67%

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).

2021 Calculations

1 Net profit margin = 100 × Net income attributable to Generac Holdings Inc. ÷ Net sales
= 100 × 550,494 ÷ 3,737,184 = 14.73%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Generac Holdings Inc. ÷ Net sales
= 100 × 549,421 ÷ 3,737,184 = 14.70%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Generac Holdings Inc. adjusted net profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net sales 3,737,184 2,485,200 2,204,336 2,023,464 1,672,445
Total assets 4,877,780 3,235,423 2,665,669 2,426,314 2,019,964
Activity Ratio
Total asset turnover1 0.77 0.77 0.83 0.83 0.83
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Net sales 3,737,184 2,485,200 2,204,336 2,023,464 1,672,445
Adjusted total assets 4,862,040 3,233,926 2,662,736 2,426,151 2,016,726
Activity Ratio
Adjusted total asset turnover2 0.77 0.77 0.83 0.83 0.83

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).

2021 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 3,737,184 ÷ 4,877,780 = 0.77

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 3,737,184 ÷ 4,862,040 = 0.77

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Generac Holdings Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets 4,877,780 3,235,423 2,665,669 2,426,314 2,019,964
Stockholders’ equity attributable to Generac Holdings Inc. 2,213,774 1,390,293 1,032,382 760,549 559,552
Solvency Ratio
Financial leverage1 2.20 2.33 2.58 3.19 3.61
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 4,862,040 3,233,926 2,662,736 2,426,151 2,016,726
Adjusted stockholders’ equity attributable to Generac Holdings Inc. 2,403,997 1,504,565 1,125,777 831,686 600,103
Solvency Ratio
Adjusted financial leverage2 2.02 2.15 2.37 2.92 3.36

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).

2021 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity attributable to Generac Holdings Inc.
= 4,877,780 ÷ 2,213,774 = 2.20

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity attributable to Generac Holdings Inc.
= 4,862,040 ÷ 2,403,997 = 2.02

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Generac Holdings Inc. adjusted financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Generac Holdings Inc. 550,494 350,576 252,007 238,257 159,386
Stockholders’ equity attributable to Generac Holdings Inc. 2,213,774 1,390,293 1,032,382 760,549 559,552
Profitability Ratio
ROE1 24.87% 25.22% 24.41% 31.33% 28.48%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Generac Holdings Inc. 549,421 371,074 271,527 262,871 178,372
Adjusted stockholders’ equity attributable to Generac Holdings Inc. 2,403,997 1,504,565 1,125,777 831,686 600,103
Profitability Ratio
Adjusted ROE2 22.85% 24.66% 24.12% 31.61% 29.72%

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).

2021 Calculations

1 ROE = 100 × Net income attributable to Generac Holdings Inc. ÷ Stockholders’ equity attributable to Generac Holdings Inc.
= 100 × 550,494 ÷ 2,213,774 = 24.87%

2 Adjusted ROE = 100 × Adjusted net income attributable to Generac Holdings Inc. ÷ Adjusted stockholders’ equity attributable to Generac Holdings Inc.
= 100 × 549,421 ÷ 2,403,997 = 22.85%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Generac Holdings Inc. adjusted ROE improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Generac Holdings Inc. 550,494 350,576 252,007 238,257 159,386
Total assets 4,877,780 3,235,423 2,665,669 2,426,314 2,019,964
Profitability Ratio
ROA1 11.29% 10.84% 9.45% 9.82% 7.89%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Generac Holdings Inc. 549,421 371,074 271,527 262,871 178,372
Adjusted total assets 4,862,040 3,233,926 2,662,736 2,426,151 2,016,726
Profitability Ratio
Adjusted ROA2 11.30% 11.47% 10.20% 10.83% 8.84%

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).

2021 Calculations

1 ROA = 100 × Net income attributable to Generac Holdings Inc. ÷ Total assets
= 100 × 550,494 ÷ 4,877,780 = 11.29%

2 Adjusted ROA = 100 × Adjusted net income attributable to Generac Holdings Inc. ÷ Adjusted total assets
= 100 × 549,421 ÷ 4,862,040 = 11.30%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Generac Holdings Inc. adjusted ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.