Name: Generac Holdings Inc. (NYSE:GNRC) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

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.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Short-term borrowings	72,035)	39,282)	58,714)	45,583)	20,602)
Accounts payable	674,208)	330,247)	261,977)	328,091)	233,639)
Accrued wages and employee benefits	72,060)	63,036)	41,361)	40,819)	27,992)
Other accrued liabilities	331,674)	204,812)	132,629)	144,236)	105,067)
Current portion of long-term borrowings and finance lease obligations	5,930)	4,147)	2,383)	1,977)	1,572)
Current liabilities	1,155,907)	641,524)	497,064)	560,706)	388,872)
Long-term borrowings and finance lease obligations, excluding current portion	902,091)	841,764)	837,767)	876,396)	906,548)
Deferred income taxes	205,964)	115,769)	96,328)	71,300)	43,789)
Operating lease and other long-term liabilities	341,681)	179,955)	140,432)	95,647)	76,995)
Long-term liabilities	1,449,736)	1,137,488)	1,074,527)	1,043,343)	1,027,332)
Total liabilities	2,605,643)	1,779,012)	1,571,591)	1,604,049)	1,416,204)
Redeemable noncontrolling interest	58,050)	66,207)	61,227)	61,004)	43,929)
Common stock, par value $0.01	725)	721)	717)	712)	708)
Additional paid-in capital	952,939)	525,541)	498,866)	476,116)	459,816)
Treasury stock, at cost	(448,976)	(332,164)	(324,551)	(321,473)	(294,005)
Excess purchase price over predecessor basis	(202,116)	(202,116)	(202,116)	(202,116)	(202,116)
Retained earnings	1,965,957)	1,432,565)	1,084,383)	831,123)	616,347)
Accumulated other comprehensive loss	(54,755)	(34,254)	(24,917)	(23,813)	(21,198)
Stockholders’ equity attributable to Generac Holdings Inc.	2,213,774)	1,390,293)	1,032,382)	760,549)	559,552)
Noncontrolling interests	313)	(89)	469)	712)	279)
Total stockholders’ equity	2,214,087)	1,390,204)	1,032,851)	761,261)	559,831)
Total liabilities and stockholders’ equity	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 total balance sheet size experienced significant expansion between 2017 and 2021, growing from approximately 2.02 billion US dollars to 4.88 billion US dollars. This growth is characterized by a simultaneous increase in total liabilities and a substantial strengthening of stockholders' equity, indicating a period of rapid operational scaling and capital accumulation.

Current Liabilities Trend: Current liabilities nearly tripled over the five-year period, rising from 388.9 million US dollars in 2017 to 1.16 billion US dollars in 2021. The primary driver of this increase was accounts payable, which surged from 233.6 million US dollars to 674.2 million US dollars, with a particularly sharp acceleration occurring between 2020 and 2021. Short-term borrowings also exhibited an upward trend, increasing from 20.6 million US dollars to 72.0 million US dollars, suggesting a greater reliance on short-term financing to support working capital requirements.
Long-term Obligations and Liabilities: Long-term liabilities grew from 1.03 billion US dollars in 2017 to 1.45 billion US dollars in 2021. While long-term borrowings and finance lease obligations remained relatively stable, ending 2021 at 902.1 million US dollars—nearly identical to the 906.5 million US dollars reported in 2017—other components grew substantially. Operating lease and other long-term liabilities increased more than fourfold, from 77.0 million US dollars to 341.7 million US dollars. Additionally, deferred income taxes showed a steady upward trajectory, rising from 43.8 million US dollars to 206.0 million US dollars.
Stockholders' Equity Evolution: Total stockholders' equity demonstrated robust growth, increasing from 559.8 million US dollars in 2017 to 2.21 billion US dollars in 2021. This expansion was driven primarily by retained earnings, which grew from 616.3 million US dollars to 1.97 billion US dollars, reflecting strong internal profit generation. Additional paid-in capital also saw a significant increase, particularly between 2020 and 2021, rising to 952.9 million US dollars. These gains were partially offset by an increase in treasury stock at cost, which grew from 294.0 million US dollars to 449.0 million US dollars, indicating active share repurchase activity.
Capital Structure and Solvency: An analysis of the relationship between liabilities and equity reveals a shift toward a more equity-heavy capital structure. In 2017, total liabilities were approximately 2.5 times the value of total stockholders' equity. By 2021, this ratio decreased significantly, with total liabilities being approximately 1.18 times the value of total stockholders' equity. This trend indicates a reduction in financial leverage and an improved solvency position over the analyzed period.

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