Current Ratio
since 2010
Calculation
Generac Holdings Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 1.60 | = | 1,848,464) | ÷ | 1,155,907) |
| Dec 31, 2020 | 2.60 | = | 1,669,733) | ÷ | 641,524) |
| Dec 31, 2019 | 2.41 | = | 1,195,829) | ÷ | 497,064) |
| Dec 31, 2018 | 2.00 | = | 1,120,769) | ÷ | 560,706) |
| Dec 31, 2017 | 2.10 | = | 818,556) | ÷ | 388,872) |
| Dec 31, 2016 | 2.00 | = | 683,509) | ÷ | 341,939) |
| Dec 31, 2015 | 3.10 | = | 661,372) | ÷ | 213,224) |
| Dec 31, 2014 | 3.04 | = | 730,478) | ÷ | 240,522) |
| Dec 31, 2013 | 2.61 | = | 654,179) | ÷ | 250,845) |
| Dec 31, 2012 | 1.77 | = | 522,553) | ÷ | 294,859) |
| Dec 31, 2011 | 2.32 | = | 383,265) | ÷ | 165,390) |
| Dec 31, 2010 | 3.14 | = | 272,519) | ÷ | 86,685) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 US$ in thousands
The liquidity profile reflects a significant expansion in the scale of working capital from 2010 to 2021, characterized by substantial growth in both current assets and current liabilities, alongside fluctuations in the current ratio.
- Growth of Current Assets
- Current assets demonstrated a consistent upward trajectory, increasing from 272,519 thousand US dollars in 2010 to 1,848,464 thousand US dollars by 2021. The growth was steady for the first decade, with a more pronounced acceleration occurring between 2019 and 2021.
- Current Liabilities Expansion
- Current liabilities rose from 86,685 thousand US dollars in 2010 to 1,155,907 thousand US dollars in 2021. A notable surge is observed in the final year of the period, where liabilities increased from 641,524 thousand US dollars in 2020 to 1,155,907 thousand US dollars in 2021, representing a sharp increase in short-term obligations.
- Current Ratio Volatility
- The current ratio exhibited a cyclical pattern, starting at a peak of 3.14 in 2010 and declining to 1.77 by 2012. A period of strengthening followed, with the ratio returning to 3.10 by 2015. From 2016 to 2020, the ratio remained relatively stable, oscillating between 2.00 and 2.60. By December 31, 2021, the ratio dropped to 1.60, the lowest level since 2012, indicating a compression of the liquidity margin resulting from the rapid increase in current liabilities relative to the growth in current assets.
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Comparison to Competitors
Generac Holdings Inc., current ratio, long-term trends, comparison to competitors
| Generac Holdings Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 1.60 | 1.33 | 1.46 | 1.04 | 1.28 | 1.30 | 1.42 | 1.19 |
| Dec 31, 2020 | 2.60 | 1.39 | 1.53 | 1.56 | 1.58 | 1.47 | 1.39 | 1.21 |
| Dec 31, 2019 | 2.41 | 1.05 | 1.47 | 1.70 | 1.16 | 1.34 | 1.22 | 1.08 |
| Dec 31, 2018 | 2.00 | 1.08 | 1.37 | 1.47 | — | 1.29 | 1.12 | 1.13 |
| Dec 31, 2017 | 2.10 | 1.16 | 1.35 | 1.64 | — | 1.38 | 1.38 | 1.35 |
| Dec 31, 2016 | 2.00 | 1.25 | 1.22 | 1.27 | — | 1.41 | 1.20 | 1.30 |
| Dec 31, 2015 | 3.10 | 1.35 | 1.31 | 1.43 | — | 1.09 | 1.15 | 1.18 |
| Dec 31, 2014 | 3.04 | 1.20 | 1.39 | 1.51 | — | 1.50 | 1.11 | 1.30 |
| Dec 31, 2013 | 2.61 | 1.26 | 1.40 | 1.78 | — | 1.49 | 1.20 | 1.29 |
| Dec 31, 2012 | 1.77 | 1.27 | 1.43 | 1.44 | — | 1.35 | 1.14 | 1.24 |
| Dec 31, 2011 | 2.32 | 1.21 | 1.33 | 1.60 | — | 1.31 | 1.16 | 1.38 |
| Dec 31, 2010 | 3.14 | 1.15 | 1.44 | 1.70 | — | 1.28 | 1.15 | 1.33 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
Comparison to Sector (Capital Goods)
Generac Holdings Inc., current ratio, long-term trends, comparison to sector (capital goods)
| Generac Holdings Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2021 | 1.60 | 1.31 |
| Dec 31, 2020 | 2.60 | 1.43 |
| Dec 31, 2019 | 2.41 | 1.17 |
| Dec 31, 2018 | 2.00 | 1.17 |
| Dec 31, 2017 | 2.10 | 1.29 |
| Dec 31, 2016 | 2.00 | 1.27 |
| Dec 31, 2015 | 3.10 | 1.26 |
| Dec 31, 2014 | 3.04 | 1.29 |
| Dec 31, 2013 | 2.61 | 1.34 |
| Dec 31, 2012 | 1.77 | 1.31 |
| Dec 31, 2011 | 2.32 | 1.29 |
| Dec 31, 2010 | 3.14 | 1.28 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
Comparison to Industry (Industrials)
Generac Holdings Inc., current ratio, long-term trends, comparison to industry (industrials)
| Generac Holdings Inc. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 1.60 | 1.29 |
| Dec 31, 2020 | 2.60 | 1.41 |
| Dec 31, 2019 | 2.41 | 1.16 |
| Dec 31, 2018 | 2.00 | 1.13 |
| Dec 31, 2017 | 2.10 | 1.24 |
| Dec 31, 2016 | 2.00 | 1.22 |
| Dec 31, 2015 | 3.10 | 1.24 |
| Dec 31, 2014 | 3.04 | 1.26 |
| Dec 31, 2013 | 2.61 | 1.33 |
| Dec 31, 2012 | 1.77 | 1.30 |
| Dec 31, 2011 | 2.32 | 1.30 |
| Dec 31, 2010 | 3.14 | 1.28 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).