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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.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Generac Holdings Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Short-term borrowings 1.48 1.21 2.20 1.88 1.02
Accounts payable 13.82 10.21 9.83 13.52 11.57
Accrued wages and employee benefits 1.48 1.95 1.55 1.68 1.39
Other accrued liabilities 6.80 6.33 4.98 5.94 5.20
Current portion of long-term borrowings and finance lease obligations 0.12 0.13 0.09 0.08 0.08
Current liabilities 23.70% 19.83% 18.65% 23.11% 19.25%
Long-term borrowings and finance lease obligations, excluding current portion 18.49 26.02 31.43 36.12 44.88
Deferred income taxes 4.22 3.58 3.61 2.94 2.17
Operating lease and other long-term liabilities 7.00 5.56 5.27 3.94 3.81
Long-term liabilities 29.72% 35.16% 40.31% 43.00% 50.86%
Total liabilities 53.42% 54.99% 58.96% 66.11% 70.11%
Redeemable noncontrolling interest 1.19 2.05 2.30 2.51 2.17
Common stock, par value $0.01 0.01 0.02 0.03 0.03 0.04
Additional paid-in capital 19.54 16.24 18.71 19.62 22.76
Treasury stock, at cost -9.20 -10.27 -12.18 -13.25 -14.55
Excess purchase price over predecessor basis -4.14 -6.25 -7.58 -8.33 -10.01
Retained earnings 40.30 44.28 40.68 34.25 30.51
Accumulated other comprehensive loss -1.12 -1.06 -0.93 -0.98 -1.05
Stockholders’ equity attributable to Generac Holdings Inc. 45.38% 42.97% 38.73% 31.35% 27.70%
Noncontrolling interests 0.01 0.00 0.02 0.03 0.01
Total stockholders’ equity 45.39% 42.97% 38.75% 31.38% 27.71%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

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).

A significant structural shift in the capital composition is evident between 2017 and 2021, characterized by a consistent reduction in total liabilities and a corresponding increase in total stockholders' equity. Total liabilities declined from 70.11% of total liabilities and stockholders' equity in 2017 to 53.42% by 2021. Conversely, total stockholders' equity grew from 27.71% to 45.39% over the same period, indicating a strategic transition toward a more equity-funded balance sheet and reduced financial leverage.

Long-Term Debt Obligations
The most pronounced change is observed in long-term borrowings and finance lease obligations, which fell sharply from 44.88% in 2017 to 18.49% in 2021. This downward trajectory drove the overall decline in long-term liabilities, which decreased from 50.86% to 29.72%. This pattern suggests a concerted effort to pay down long-term debt or a significant expansion of the asset base that diluted the relative weight of existing long-term obligations.
Current Liability Dynamics
Current liabilities remained relatively stable as a percentage of the total structure, fluctuating between 18.65% and 23.70%. Accounts payable emerged as the primary component of current liabilities, peaking at 13.82% in 2021. Short-term borrowings remained low throughout the period, never exceeding 2.20%, suggesting that the company did not rely heavily on short-term credit facilities to manage liquidity.
Equity Growth and Composition
The increase in stockholders' equity was primarily driven by the growth of retained earnings, which rose from 30.51% in 2017 to a peak of 44.28% in 2020, before settling at 40.30% in 2021. This indicates strong internal capital generation. Additionally, the negative impact of treasury stock decreased from -14.55% in 2017 to -9.20% in 2021, and the "excess purchase price over predecessor basis" also trended upward from -10.01% to -4.14%, further contributing to the relative increase in total equity.
Other Liability Trends
Deferred income taxes and operating lease liabilities showed gradual increases. Deferred income taxes rose from 2.17% to 4.22%, while operating lease and other long-term liabilities increased from 3.81% to 7.00%. These increases were marginal compared to the substantial reduction in long-term borrowings.

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