Return on Assets (ROA)
since 2010
Calculation
Generac Holdings Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to Generac Holdings Inc.1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 11.29% | = | 100 | × | 550,494) | ÷ | 4,877,780) |
| Dec 31, 2020 | 10.84% | = | 100 | × | 350,576) | ÷ | 3,235,423) |
| Dec 31, 2019 | 9.45% | = | 100 | × | 252,007) | ÷ | 2,665,669) |
| Dec 31, 2018 | 9.82% | = | 100 | × | 238,257) | ÷ | 2,426,314) |
| Dec 31, 2017 | 7.89% | = | 100 | × | 159,386) | ÷ | 2,019,964) |
| Dec 31, 2016 | 5.31% | = | 100 | × | 98,788) | ÷ | 1,861,684) |
| Dec 31, 2015 | 4.34% | = | 100 | × | 77,747) | ÷ | 1,792,816) |
| Dec 31, 2014 | 9.28% | = | 100 | × | 174,613) | ÷ | 1,882,542) |
| Dec 31, 2013 | 9.71% | = | 100 | × | 174,539) | ÷ | 1,798,205) |
| Dec 31, 2012 | 5.81% | = | 100 | × | 93,223) | ÷ | 1,603,847) |
| Dec 31, 2011 | 20.91% | = | 100 | × | 324,643) | ÷ | 1,552,793) |
| Dec 31, 2010 | -8.10% | = | 100 | × | (97,952) | ÷ | 1,209,883) |
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 financial trajectory from 2010 to 2021 is characterized by an initial period of high volatility followed by a sustained phase of growth in both profitability and the asset base. After an initial net loss, the organization entered a cycle of expansion and efficiency gains that strengthened the relationship between resource deployment and earnings generation.
- Net Income and Asset Expansion
- Net income experienced a sharp reversal from a loss of US$97.95 million in 2010 to a peak of US$324.64 million in 2011. Despite subsequent fluctuations between 2012 and 2015, a consistent upward trend was established from 2016 onward, with net income reaching US$550.49 million by 2021. Parallel to this, total assets grew steadily from US$1.21 billion in 2010 to US$4.88 billion in 2021, with the most significant increase occurring between 2020 and 2021.
- Return on Assets (ROA) Volatility and Stabilization
- The ROA exhibited extreme variance in the early years of the period, moving from -8.10% in 2010 to a high of 20.91% in 2011. Following this peak, the ratio entered a period of instability, fluctuating between a low of 4.34% in 2015 and 9.71% in 2013. Starting in 2016, the ROA demonstrated a stable and progressive recovery, climbing from 5.31% to 11.29% by the end of 2021.
- Operational Efficiency Trends
- The data indicates a positive correlation between asset growth and profitability in the latter half of the decade. The increase in ROA from 2017 to 2021, despite a substantial increase in the total asset base, suggests improved operational efficiency. The organization successfully scaled its operations, ensuring that the growth in assets translated into proportionally higher net earnings.
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Comparison to Competitors
Generac Holdings Inc., ROA, 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 | 11.29% | -3.03% | 7.84% | 6.30% | -3.28% | 8.60% | 12.41% | 2.39% |
| Dec 31, 2020 | 10.84% | -7.80% | 3.83% | 4.43% | 2.25% | 7.40% | 13.47% | -2.17% |
| Dec 31, 2019 | 9.45% | -0.48% | 7.77% | 6.74% | -1.87% | 10.47% | 13.11% | 3.96% |
| Dec 31, 2018 | 9.82% | 8.91% | 7.83% | 6.90% | -7.23% | 11.71% | 11.24% | 3.93% |
| Dec 31, 2017 | 7.89% | 8.88% | 0.98% | 9.15% | -1.53% | 2.79% | 4.30% | 4.70% |
| Dec 31, 2016 | 5.31% | 5.44% | -0.09% | 6.32% | 2.42% | 8.88% | 11.09% | 5.64% |
| Dec 31, 2015 | 4.34% | 5.48% | 2.68% | 6.38% | -1.24% | 9.67% | 7.34% | 8.70% |
| Dec 31, 2014 | 9.28% | 5.49% | 4.36% | 5.35% | 2.35% | 9.33% | 9.75% | 6.81% |
| Dec 31, 2013 | 9.71% | 4.95% | 4.46% | 5.24% | 1.99% | 8.64% | 8.24% | 6.31% |
| Dec 31, 2012 | 5.81% | 4.39% | 6.36% | 3.39% | 1.99% | 6.99% | 7.10% | 5.74% |
| Dec 31, 2011 | 20.91% | 5.02% | 6.05% | 7.55% | 1.97% | 5.19% | 7.00% | 8.10% |
| Dec 31, 2010 | -8.10% | 4.82% | 4.22% | 5.38% | 1.55% | 5.34% | 8.34% | 7.48% |
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., ROA, long-term trends, comparison to sector (capital goods)
| Generac Holdings Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2021 | 11.29% | 1.86% |
| Dec 31, 2020 | 10.84% | 0.80% |
| Dec 31, 2019 | 9.45% | 2.72% |
| Dec 31, 2018 | 9.82% | 1.74% |
| Dec 31, 2017 | 7.89% | 1.83% |
| Dec 31, 2016 | 5.31% | 4.09% |
| Dec 31, 2015 | 4.34% | 2.17% |
| Dec 31, 2014 | 9.28% | 3.87% |
| Dec 31, 2013 | 9.71% | 3.45% |
| Dec 31, 2012 | 5.81% | 3.30% |
| Dec 31, 2011 | 20.91% | 3.30% |
| Dec 31, 2010 | -8.10% | 2.70% |
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., ROA, long-term trends, comparison to industry (industrials)
| Generac Holdings Inc. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 11.29% | 3.40% |
| Dec 31, 2020 | 10.84% | 0.04% |
| Dec 31, 2019 | 9.45% | 2.56% |
| Dec 31, 2018 | 9.82% | 3.16% |
| Dec 31, 2017 | 7.89% | 3.59% |
| Dec 31, 2016 | 5.31% | 4.55% |
| Dec 31, 2015 | 4.34% | 3.52% |
| Dec 31, 2014 | 9.28% | 4.31% |
| Dec 31, 2013 | 9.71% | 3.91% |
| Dec 31, 2012 | 5.81% | 3.38% |
| Dec 31, 2011 | 20.91% | 3.69% |
| Dec 31, 2010 | -8.10% | 3.03% |
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).