Generac Holdings Inc. (NYSE:GNRC)

Total inventories exhibited a significant upward trajectory over the five-year period ending December 31, 2021. Following a period of moderate growth and a slight contraction in 2019, inventory levels experienced a substantial acceleration, culminating in an 80.7% increase between 2020 and 2021, reaching $1,089,705 thousand.

Raw Material Trends

Raw materials constitute the primary component of the total inventory balance. This category grew from $242,239 thousand in 2017 to $727,162 thousand in 2021. The most pronounced increase occurred between 2020 and 2021, where raw material stocks nearly doubled, suggesting an aggressive strategy to secure inputs or a response to heightened supply chain volatility.

Finished Goods Analysis

Finished goods demonstrated a consistent growth pattern, rising from $135,558 thousand in 2017 to $351,787 thousand in 2021. The increase in finished goods suggests a scaling of production and an expansion of available stock to support sales growth, with a notable jump of approximately 59% in the final year analyzed.

Work-in-Process Observations

Work-in-process inventory remains the smallest segment of the inventory portfolio. Although the value increased from $2,544 thousand in 2017 to $10,756 thousand in 2021, it maintains a negligible impact on the overall inventory composition compared to raw materials and finished goods.

The overall inventory structure is heavily weighted toward raw materials, which represented approximately 63.7% of total inventories in 2017 and increased to approximately 66.7% by 2021. This trend indicates a strategic shift toward maintaining larger buffers of raw inputs relative to finished output.