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.

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 financial data exhibits significant changes across various liability and equity accounts over the analyzed periods. A detailed examination reveals several key trends and insights:

Short-term Borrowings

Short-term borrowings display volatility, increasing notably from 20,602 thousand USD in 2017 to a peak of 58,714 thousand USD in 2019, followed by a decrease in 2020 to 39,282 thousand USD and then a sharp rise to 72,035 thousand USD in 2021. This suggests fluctuating short-term liquidity or financing needs.

Accounts Payable

Accounts payable show an overall upward trend with fluctuations, starting at 233,639 thousand USD in 2017, peaking substantially at 674,208 thousand USD in 2021. This significant escalation in 2021 indicates increased outstanding obligations to suppliers or vendors, possibly reflecting higher operational scale or delayed payments.

Accrued Wages and Employee Benefits

This liability increased steadily from 27,992 thousand USD in 2017 to 72,060 thousand USD in 2021, reflecting growing payroll obligations consistent with either expansion in workforce or higher wage commitments.

Other Accrued Liabilities

Other accrued liabilities increased from 105,067 thousand USD in 2017 to 331,674 thousand USD in 2021, with a marked rise especially between 2020 and 2021. This growth indicates additional operational or contingent liabilities accruing over time.

Current Portion of Long-term Borrowings and Finance Lease Obligations

There is a gradual increase in the current portion of long-term borrowing commitments, from 1,572 thousand USD in 2017 to 5,930 thousand USD in 2021, signifying increasing short-term repayment obligations related to long-term debt.

Current Liabilities

Current liabilities demonstrate a rising trend, starting at 388,872 thousand USD in 2017 and escalating sharply to 1,155,907 thousand USD in 2021. This substantial increase points to expanding short-term obligations encumbering the company’s liquidity.

Long-term Borrowings and Finance Lease Obligations

Long-term debt, excluding current portions, slightly fluctuates, showing a decrease from 906,548 thousand USD in 2017 to a low of 837,767 thousand USD in 2019, followed by a gradual increase to 902,091 thousand USD in 2021. This indicates some debt repayment and subsequent borrowing or refinancing activities.

Deferred Income Taxes

Deferred income taxes consistently rise, from 43,789 thousand USD in 2017 to 205,964 thousand USD in 2021, signifying increasing temporary differences between book and taxable income, possibly due to accelerated depreciation or other timing differences.

Operating Lease and Other Long-term Liabilities

Long-term liabilities related to operating leases and other obligations more than quadrupled from 76,995 thousand USD in 2017 to 341,681 thousand USD in 2021, indicating expanded lease commitments or similar obligations over the period.

Long-term Liabilities

Overall long-term liabilities increased from 1,027,332 thousand USD in 2017 to 1,449,736 thousand USD in 2021, reflecting both growth in borrowing and other non-current obligations.

Total Liabilities

Total liabilities rose substantially from 1,416,204 thousand USD in 2017 to 2,605,643 thousand USD in 2021. The accelerated increase from 2020 to 2021 suggests a significant expansion in obligations during the last year.

Shareholders’ Equity Components

Common Stock and Paid-in Capital: Common stock par value remains nearly constant, while additional paid-in capital increased steadily from 459,816 thousand USD in 2017 to 952,939 thousand USD in 2021, indicating sustained capital infusion through equity financing.
Treasury Stock: Treasury stock shows an increasing negative balance from -294,005 thousand USD in 2017 to -448,976 thousand USD in 2021, reflecting ongoing stock repurchase activities, which affect equity by reducing available shares outstanding.
Retained Earnings: Retained earnings grew considerably from 616,347 thousand USD in 2017 to 1,965,957 thousand USD in 2021, highlighting sustained profitability and earnings retention over the years.
Accumulated Other Comprehensive Loss: The accumulated comprehensive loss worsened over time from -21,198 thousand USD in 2017 to -54,755 thousand USD in 2021, indicating negative adjustments in other comprehensive income items such as foreign currency translation or pension liabilities.
Total Stockholders’ Equity: Total equity almost quadrupled over the period from 559,831 thousand USD in 2017 to 2,214,087 thousand USD in 2021, showcasing strong growth in net assets attributable to shareholders.

Total Liabilities and Equity

The combined total of liabilities and equity climbed sharply from 2,019,964 thousand USD in 2017 to 4,877,780 thousand USD in 2021, demonstrating significant growth in the company’s asset base and overall financing structure.

AI Ask an analyst for more

Download chart

Generac Holdings Inc. (NYSE:GNRC)

Balance Sheet: Liabilities and Stockholders’ Equity