Operating Profit Margin
since 2010
Calculation
Generac Holdings Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income from operations1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 19.30% | = | 100 | × | 721,136) | ÷ | 3,737,184) |
| Dec 31, 2020 | 19.28% | = | 100 | × | 479,106) | ÷ | 2,485,200) |
| Dec 31, 2019 | 16.88% | = | 100 | × | 372,163) | ÷ | 2,204,336) |
| Dec 31, 2018 | 17.65% | = | 100 | × | 357,181) | ÷ | 2,023,464) |
| Dec 31, 2017 | 15.01% | = | 100 | × | 251,064) | ÷ | 1,672,445) |
| Dec 31, 2016 | 14.17% | = | 100 | × | 204,617) | ÷ | 1,444,453) |
| Dec 31, 2015 | 13.63% | = | 100 | × | 179,561) | ÷ | 1,317,299) |
| Dec 31, 2014 | 20.08% | = | 100 | × | 293,375) | ÷ | 1,460,919) |
| Dec 31, 2013 | 23.66% | = | 100 | × | 351,465) | ÷ | 1,485,765) |
| Dec 31, 2012 | 19.00% | = | 100 | × | 223,555) | ÷ | 1,176,306) |
| Dec 31, 2011 | 14.27% | = | 100 | × | 112,981) | ÷ | 791,976) |
| Dec 31, 2010 | 15.23% | = | 100 | × | 90,296) | ÷ | 592,880) |
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
Generac Holdings Inc. experienced significant growth in both net sales and income from operations between 2010 and 2021. While net sales expanded from US$ 592.88 million to US$ 3.74 billion over the period, the operating profit margin exhibited cyclical volatility, characterized by an initial expansion, a sharp correction, and a subsequent period of sustained recovery.
- Initial Margin Expansion (2010-2013)
- A positive trajectory in operational efficiency is observed during the early part of the decade. The operating profit margin rose from 15.23% in 2010 to a peak of 23.66% in 2013. This period represents the highest level of profitability relative to sales within the analyzed timeframe, coinciding with a rapid increase in income from operations.
- Margin Contraction (2014-2015)
- A notable decline in profitability occurred between 2014 and 2015, where the margin fell to 13.63%, the lowest point in the series. This contraction happened despite net sales remaining relatively stable compared to the 2013 peak, suggesting a period of increased operating expenses or decreased pricing power.
- Recovery and Stabilization (2016-2021)
- Following the 2015 trough, the operating profit margin entered a consistent recovery phase. The margin climbed steadily from 14.17% in 2016 to 19.30% by 2021. The final two years of the period show a stabilization of margins near the 19% mark, coinciding with a substantial surge in net sales and income from operations, culminating in an operating income of US$ 721.14 million in 2021.
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Comparison to Competitors
Generac Holdings Inc., operating profit margin, long-term trends, comparison to competitors
| Generac Holdings Inc. | Boeing Co. | Caterpillar Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 19.30% | -4.66% | 14.27% | 13.61% | 7.70% |
| Dec 31, 2020 | 19.28% | -21.95% | 11.67% | 13.22% | -3.34% |
| Dec 31, 2019 | 16.88% | -2.58% | 16.33% | 14.29% | 11.64% |
| Dec 31, 2018 | 17.65% | 11.85% | 16.00% | 13.64% | 12.86% |
| Dec 31, 2017 | 15.01% | 11.01% | 10.32% | 11.60% | 14.49% |
| Dec 31, 2016 | 14.17% | 6.17% | 1.39% | 11.74% | 14.28% |
| Dec 31, 2015 | 13.63% | 7.74% | 7.38% | 11.78% | 13.00% |
| Dec 31, 2014 | 20.08% | 8.23% | 10.22% | 12.26% | 15.01% |
| Dec 31, 2013 | 23.66% | 7.58% | 10.68% | 9.93% | 14.70% |
| Dec 31, 2012 | 19.00% | 7.72% | 13.59% | 9.40% | 13.32% |
| Dec 31, 2011 | 14.27% | 8.50% | 12.46% | 8.56% | 13.92% |
| Dec 31, 2010 | 15.23% | 7.73% | 9.94% | 8.94% | 13.23% |
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).