Generac Holdings Inc. (NYSE:GNRC)

Land and Improvements

The value of land and improvements shows a consistent upward trend over the five-year period. Starting at $13.1 million in 2017, it increases steadily each year, reaching $26.1 million by the end of 2021. This represents nearly a doubling in value, indicating either acquisition of additional land or investments in existing land enhancements.

Buildings and Improvements

Buildings and improvements exhibit a significant growth pattern, increasing from $132.1 million in 2017 to $244.3 million in 2021. The growth is continuous and relatively smooth year over year, suggesting ongoing capital expenditure in building infrastructure and upgrades aligned with business expansion or modernization efforts.

Machinery and Equipment

Machinery and equipment investments have expanded notably, rising from $90.5 million in 2017 to $186.6 million in 2021. The growth accelerates particularly after 2019, reflecting heightened investment in production capacity or replacement of older machinery.

Dies and Tools

Dies and tools display some variability in values. The amount increased from $24.5 million in 2017 to $28.2 million in 2018 but decreased in 2019 to $22.0 million. This was followed by a rise in subsequent years, reaching $31.6 million in 2021. The fluctuations may indicate intervals of tool retirement and replacement or shifts in tooling requirements linked to production cycles.

Vehicles

Vehicle value has steadily increased over the timeframe, starting at about $1.9 million in 2017 and growing to $7.6 million by 2021. This steady growth suggests incremental acquisitions or upgrades to the vehicle fleet supporting operations or logistics.

Office Equipment and Systems

This category shows consistent growth, moving from $73.3 million in 2017 to $125.0 million in 2021. The increase implies ongoing investments in office infrastructure and technology, likely to support corporate or administrative functions.

Leasehold Improvements

Leasehold improvements have increased moderately from $2.4 million in 2017 to $5.7 million in 2021, indicating some enhancement of leased properties over time. The growth trend is steady but less pronounced compared to other asset categories.

Construction in Progress

Construction in progress reflects variable but generally upward movement, starting at $18.8 million in 2017, peaking at $36.3 million in 2019, dropping slightly in 2020, and then increasing again to $47.6 million in 2021. This suggests ongoing projects under development that may be contributing to future expansions or upgrades.

Gross Property and Equipment

Gross property and equipment have increased notably from $356.5 million in 2017 to $674.6 million in 2021. The growth rate is consistent and reflects overall capital expenditure across all categories combined, pointing to expansion and reinvestment in fixed assets.

Accumulated Depreciation

Accumulated depreciation has increased substantially in absolute terms from -$126.2 million in 2017 to -$233.7 million in 2021. This reflects the aging of assets and the recognition of depreciation expenses over time. The growing depreciation balance also emphasizes the need for ongoing capital expenditure to maintain and grow asset base.

Property and Equipment, Net

Net property and equipment value has shown steady and considerable growth from $230.4 million in 2017 to $440.9 million in 2021. This indicates that despite depreciation, the net book value of fixed assets has almost doubled, highlighting substantial reinvestment and asset base expansion over the period analyzed.

The data presents the annual metrics related to the property, plant, and equipment for the analyzed entity over a five-year period from the end of 2017 through the end of 2021. Several trends and insights can be derived from this information.

Average Age Ratio (%)

The average age ratio fluctuated slightly during the period, starting at 36.74% in 2017 and ending at 36.04% in 2021. The ratio saw a minor decline in 2018 and 2019, reaching the lowest point of 35.05% in 2019, followed by an increase to 38.13% in 2020, before decreasing again in 2021. This indicates a relatively stable asset aging process with slight variances, possibly reflecting adjustments in asset acquisition or retirement.

Estimated Total Useful Life (in years)

The estimated total useful life of the assets showed modest year-to-year changes, beginning at 15 years in 2017, increasing to 16 years in 2018, then dropping to 14 years for 2019 and 2020, and rising back to 15 years in 2021. These fluctuations suggest periodic reassessments of asset longevity, potentially due to changes in asset composition or technological updates.

Estimated Age, Time Elapsed Since Purchase (in years)

The estimated asset age showed a gradual increase over the period. It rose from 5 years in 2017 to 6 years in 2018, reverted slightly to 5 years in 2019 and 2020, and returned to 6 years in 2021. This pattern might indicate cycles of acquisitions and retirements that affect the average age of assets held.

Estimated Remaining Life (in years)

The estimated remaining life of the assets remained relatively consistent, mostly oscillating between 9 and 10 years. It was 9 years in 2017, increased to 10 years in 2018, reverted to 9 years for 2019 and 2020, and rose again to 10 years in 2021. This stability reflects balanced asset management practices focused on maintaining a certain lifecycle length for the equipment.

Overall, the data indicates a stable asset base with modest fluctuations in asset age and estimated useful life. The consistent estimated remaining life suggests careful maintenance or replacement policies aimed at sustaining asset functionality over a predictable timeframe. Minor variations in average age ratio and useful life could be driven by strategic decisions on asset replacement or technological advancements affecting equipment longevity.

Accumulated Depreciation

The accumulated depreciation showed a consistent upward trend over the analyzed period, increasing from approximately $126 million in 2017 to nearly $234 million in 2021. This growth reflects ongoing use and aging of the property, plant, and equipment assets, indicating a steady consumption of these fixed assets over time.

Gross Property and Equipment

The gross value of property and equipment increased significantly from around $357 million at the end of 2017 to approximately $675 million by the end of 2021. This represents substantial investment and expansion in fixed assets, with the most notable growth occurring between 2020 and 2021, suggesting an accelerated capital expenditure during that period.

Land and Improvements

The value of land and improvements showed a generally increasing trend, growing from about $13.1 million in 2017 to $26.1 million in 2021. The increase was more pronounced in the final year, indicating possible acquisitions or enhancements of land assets that may support operational capacity or future development.

Average Age Ratio

The average age ratio, expressed as a percentage, fluctuated moderately throughout the period. It started at 36.74% in 2017, declined slightly until 2019 (35.05%), then rose to 38.13% in 2020 before settling at 36.04% in 2021. This pattern suggests relatively stable asset aging with minor variances, implying the asset base is maintained without significant backlog of aging equipment.

This analysis evaluates the trends in property, plant, and equipment (PP&E) related data over a five-year period ending in 2021.

Gross Property and Equipment

The gross property and equipment showed a consistent increase throughout the observed years. Starting at $356.5 million in 2017, it rose steadily each year to reach $674.6 million by the end of 2021. This reflects a cumulative growth of approximately 89%, indicating significant investment in physical assets over the period.

Land and Improvements

Land and improvements also experienced steady growth, increasing from $13.1 million in 2017 to $26.1 million in 2021. This 100% rise suggests a strategic focus on expanding or enhancing land holdings or its immediate infrastructure.

Depreciation Expense

The depreciation expense exhibited an upward trend, increasing from $23.1 million in 2017 to $42.2 million in 2021. The consistent rise in depreciation aligns with the growth in gross property and equipment, reflecting increased capital assets subject to depreciation. The increase in depreciation expense by approximately 82% over five years indicates higher charges against earnings due to expanded asset base or changes in asset utilization.

Estimated Total Useful Life

The estimated total useful life of assets fluctuated slightly during the period, ranging between 14 and 16 years. It started at 15 years in 2017, increased to 16 years in 2018, dropped to 14 years for 2019 and 2020, and returned to 15 years in 2021. These variations suggest adjustments in management’s assessment of asset longevity, potentially influenced by changes in asset composition or conditions.

The analysis of the property, plant, and equipment data over the five-year period reveals several notable trends related to accumulated depreciation, depreciation expense, and the average age of assets.

Accumulated Depreciation

The accumulated depreciation consistently increased each year, rising from $126,168 thousand at the end of 2017 to $233,699 thousand at the end of 2021. This steady growth indicates ongoing utilization and wear of the fixed assets, reflecting the systematic allocation of the cost of property, plant, and equipment over their useful lives.

Depreciation Expense

Depreciation expense also exhibited an upward trend during the period analyzed. It grew from $23,127 thousand in 2017 to $42,155 thousand in 2021. The rising depreciation expense suggests either increased capital expenditure in prior periods leading to higher base values for depreciation or changes in depreciation methods or asset classes. The increase was relatively consistent year-over-year, with the largest jumps occurring in 2019 and 2021.

Time Elapsed Since Purchase

The average age of assets, measured as the time elapsed since purchase, fluctuated slightly but remained around 5 to 6 years. This stability suggests that the asset base has a relatively consistent turnover and that the company is maintaining its fixed asset portfolio without significant shifts in asset age. The return to 6 years in 2021 after a slight dip to 5 years in 2019 and 2020 may reflect recent asset acquisitions aligning with ongoing replacement or expansion activities.

Overall, the data depict a pattern of increasing depreciation expenses and accumulated depreciation consistent with asset usage and aging. The relatively stable asset age range suggests prudent asset management without extensive obsolescence or rapid asset turnover. The data imply continuous investment in property, plant, and equipment, contributing to higher depreciation charges as newer assets are incorporated into the depreciation schedule.

Property and Equipment, Net

The net value of property and equipment has demonstrated a consistent upward trend from 2017 to 2021. Beginning at $230,380 thousand in 2017, it increased annually, reaching $440,852 thousand by the end of 2021. This signifies substantial investment or capital expenditure in property and equipment over the five-year period, with the most notable growth occurring between 2020 and 2021.

Land and Improvements

The value of land and improvements also exhibited a progressive increase throughout the analyzed period. Starting at $13,118 thousand in 2017, this figure rose steadily, culminating at $26,137 thousand in 2021. The increase is relatively steady with a slight acceleration in 2021, paralleling the growth seen in the overall property and equipment valuation.

Depreciation Expense

Depreciation expense has risen consistently each year, moving from $23,127 thousand in 2017 to $42,155 thousand in 2021. This escalation corresponds with the increase in property and equipment assets, reflecting higher depreciation charges attributable to larger asset bases. The growth in depreciation expense indicates ongoing capital asset utilization and aging over the period.

Estimated Remaining Life

The estimated remaining life of property and equipment remained relatively stable, fluctuating between 9 and 10 years across the five years. There is no significant trend upward or downward, suggesting a consistent approach to asset life estimation or the balanced introduction of new assets and retirement of older ones.