Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Generac Holdings Inc., consolidated balance sheet: assets

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Cash and cash equivalents	147,339)	655,128)	322,883)	224,482)	138,472)
Accounts receivable, less allowance for credit losses	546,466)	374,906)	319,538)	326,133)	280,002)
Inventories	1,089,705)	603,317)	522,024)	544,750)	380,341)
Prepaid expenses and other assets	64,954)	36,382)	31,384)	25,404)	19,741)
Current assets	1,848,464)	1,669,733)	1,195,829)	1,120,769)	818,556)
Property and equipment, net	440,852)	343,936)	316,976)	278,929)	230,380)
Customer lists, net	238,722)	49,205)	55,552)	61,194)	41,064)
Patents and technology, net	492,473)	86,727)	85,546)	29,970)	39,617)
Other intangible assets, net	66,436)	9,932)	8,259)	3,043)	2,401)
Tradenames, net	243,531)	146,159)	148,377)	152,283)	152,683)
Intangible assets, net	1,041,162)	292,023)	297,734)	246,490)	235,765)
Goodwill	1,409,674)	855,228)	805,284)	764,655)	721,523)
Deferred income taxes	15,740)	1,497)	2,933)	163)	3,238)
Operating lease and other assets	121,888)	73,006)	46,913)	15,308)	10,502)
Noncurrent assets	3,029,316)	1,565,690)	1,469,840)	1,305,545)	1,201,408)
Total assets	4,877,780)	3,235,423)	2,665,669)	2,426,314)	2,019,964)

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 financial data reveals notable trends in the asset composition and total asset growth over the five-year period ending December 31, 2021.

Cash and Cash Equivalents

Cash reserves displayed considerable fluctuation, increasing significantly from $138.5 million in 2017 to a peak of $655.1 million in 2020, before declining sharply to $147.3 million in 2021. This pattern suggests varying cash management strategies or significant cash utilization in 2021.

Accounts Receivable (net)

Accounts receivable grew steadily from $280.0 million in 2017 to $546.5 million in 2021, indicating increased sales on credit or extended collection periods, potentially reflecting business expansion.

Inventories

Inventories showed strong growth, nearly tripling from $380.3 million in 2017 to $1.09 billion in 2021. This significant buildup may imply increased production capacity, anticipation of higher demand, or possibly less efficient inventory turnover.

Prepaid Expenses and Other Assets

These assets increased steadily from $19.7 million in 2017 to $64.9 million in 2021, showing a consistent rise that might relate to increased advance payments or accrued benefits aligned with business growth.

Current Assets

Total current assets rose substantially, from $818.6 million in 2017 to $1.85 billion in 2021, driven mainly by the increases in cash, receivables, and inventories, underscoring enhanced liquidity and operational scale.

Property and Equipment (net)

There was a steady increase in property and equipment from $230.4 million to $440.9 million over the period, indicating ongoing investments in fixed assets and capacity expansion.

Intangible Assets

Customer Lists (net): Increased from $41.1 million in 2017 to a significant $238.7 million in 2021, with minor fluctuations, potentially reflecting acquisitions or enhanced valuation.
Patents and Technology (net): Displayed a marked rise, particularly from 2019 onward, reaching $492.5 million by 2021, indicating substantial investments in intellectual property or acquisition of technology assets.
Other Intangible Assets (net): Increased from $2.4 million to $66.4 million, reflecting minor assets growing more notably towards the end of the period.
Tradenames (net): Slight decline over time until 2020, followed by an increase to $243.5 million in 2021, possibly due to revaluation or acquisition activities.
Total Intangible Assets (net): Aggregate intangible assets more than tripled from $235.8 million in 2017 to over $1.04 billion in 2021, supporting a growth strategy heavily reliant on intangible assets.

Goodwill

Goodwill grew steadily from $721.5 million in 2017 to nearly $1.41 billion by 2021, suggesting ongoing acquisitions or business combinations contributing to the company's expansion.

Deferred Income Taxes

These fluctuated at relatively low levels until a notable increase to $15.7 million in 2021, which may relate to tax planning adjustments or timing differences associated with asset additions.

Operating Lease and Other Assets

These assets increased consistently from $10.5 million in 2017 to $121.9 million in 2021, possibly reflecting increased lease obligations or other long-term asset commitments.

Noncurrent Assets

Noncurrent assets showed steady growth, nearly doubling from $1.20 billion to $3.03 billion, driven primarily by the rise in intangible assets, goodwill, and property and equipment, indicating ongoing capital investment and acquisition activity.

Total Assets

The total assets expanded significantly from approximately $2.02 billion in 2017 to nearly $4.88 billion in 2021, indicating rapid overall growth of the company’s asset base, with the most pronounced increases occurring in intangible assets and goodwill, highlighting an acquisition-driven growth strategy.

Assets: Selected Items

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Current Assets: Selected Items

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Generac Holdings Inc. (NYSE:GNRC)

Balance Sheet: Assets

Assets: Selected Items

Current Assets: Selected Items