Return on Equity (ROE)
since 2010
Calculation
Generac Holdings Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to Generac Holdings Inc.1 | ÷ | Stockholders’ equity attributable to Generac Holdings Inc.1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 24.87% | = | 100 | × | 550,494) | ÷ | 2,213,774) |
| Dec 31, 2020 | 25.22% | = | 100 | × | 350,576) | ÷ | 1,390,293) |
| Dec 31, 2019 | 24.41% | = | 100 | × | 252,007) | ÷ | 1,032,382) |
| Dec 31, 2018 | 31.33% | = | 100 | × | 238,257) | ÷ | 760,549) |
| Dec 31, 2017 | 28.48% | = | 100 | × | 159,386) | ÷ | 559,552) |
| Dec 31, 2016 | 24.63% | = | 100 | × | 98,788) | ÷ | 401,122) |
| Dec 31, 2015 | 16.69% | = | 100 | × | 77,747) | ÷ | 465,871) |
| Dec 31, 2014 | 35.65% | = | 100 | × | 174,613) | ÷ | 489,799) |
| Dec 31, 2013 | 55.05% | = | 100 | × | 174,539) | ÷ | 317,071) |
| Dec 31, 2012 | 20.11% | = | 100 | × | 93,223) | ÷ | 463,628) |
| Dec 31, 2011 | 42.22% | = | 100 | × | 324,643) | ÷ | 768,889) |
| Dec 31, 2010 | -22.21% | = | 100 | × | (97,952) | ÷ | 441,067) |
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 phase of extreme volatility followed by a period of sustained profitability and capital expansion. The transition from a significant net loss in 2010 to consistent, growing net income by 2021 reflects a fundamental shift in operational performance and financial stability.
- Return on Equity Volatility (2010–2015)
- The early period was marked by significant fluctuations in ROE, which shifted from -22.21% in 2010 to a peak of 55.05% in 2013. This volatility was driven by erratic swings in net income and a fluctuating equity base. Specifically, the 2013 peak in ROE was influenced by a contraction in stockholders' equity to its period low of 317,071 thousand US dollars, which amplified the return ratio despite moderate net income.
- Stabilization and Scaling (2016–2021)
- Beginning in 2016, ROE entered a phase of relative stability, maintaining a range between 24% and 31%. In the final three years of the period, the ratio remained remarkably consistent, hovering between 24.41% and 25.22%. This stability indicates that earnings growth scaled proportionally with the increase in the capital base, preventing the dilution of returns typically associated with rapid equity growth.
- Correlation Between Equity Expansion and Net Income
- A substantial increase in stockholders' equity is observed, growing from 441,067 thousand US dollars in 2010 to 2,213,774 thousand US dollars in 2021. Parallel to this, net income attributable to the company rose from a loss of 97,952 thousand US dollars to a profit of 550,494 thousand US dollars. The ability to maintain a consistent ROE of approximately 25% while the equity base expanded five-fold suggests a sustainable and scalable business model during the latter half of the decade.
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Comparison to Competitors
Generac Holdings Inc., ROE, 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 | 24.87% | — | 39.37% | 13.06% | -16.17% | 29.85% | 57.62% | 5.29% |
| Dec 31, 2020 | 25.22% | — | 19.56% | 9.44% | 16.04% | 27.23% | 113.60% | -4.88% |
| Dec 31, 2019 | 24.41% | — | 41.77% | 13.75% | -17.58% | 33.22% | 199.23% | 13.25% |
| Dec 31, 2018 | 31.33% | 3,085.55% | 43.79% | 13.32% | -72.16% | 37.21% | 361.98% | 13.70% |
| Dec 31, 2017 | 28.48% | 2,309.01% | 5.50% | 17.30% | -9.00% | 9.58% | — | 15.37% |
| Dec 31, 2016 | 24.63% | 599.14% | -0.51% | 12.90% | 11.65% | 24.83% | 350.89% | 18.33% |
| Dec 31, 2015 | 16.69% | 81.70% | 14.19% | 13.03% | -6.23% | 26.08% | 116.40% | 27.81% |
| Dec 31, 2014 | 35.65% | 62.85% | 22.06% | 11.36% | 11.89% | 24.01% | 106.29% | 19.93% |
| Dec 31, 2013 | 55.05% | 30.82% | 18.21% | 11.08% | 10.00% | 22.47% | 60.61% | 17.95% |
| Dec 31, 2012 | 20.11% | 66.47% | 32.40% | 8.07% | 11.09% | 22.55% | 7,038.46% | 19.80% |
| Dec 31, 2011 | 42.22% | 114.31% | 38.25% | 18.07% | 12.15% | 19.13% | 265.23% | 22.76% |
| Dec 31, 2010 | -22.21% | 119.56% | 24.94% | 12.62% | 9.79% | 18.96% | 78.91% | 20.45% |
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., ROE, long-term trends, comparison to sector (capital goods)
| Generac Holdings Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2021 | 24.87% | 8.48% |
| Dec 31, 2020 | 25.22% | 4.42% |
| Dec 31, 2019 | 24.41% | 18.11% |
| Dec 31, 2018 | 31.33% | 11.28% |
| Dec 31, 2017 | 28.48% | 10.13% |
| Dec 31, 2016 | 24.63% | 20.08% |
| Dec 31, 2015 | 16.69% | 10.42% |
| Dec 31, 2014 | 35.65% | 18.16% |
| Dec 31, 2013 | 55.05% | 15.14% |
| Dec 31, 2012 | 20.11% | 17.58% |
| Dec 31, 2011 | 42.22% | 19.63% |
| Dec 31, 2010 | -22.21% | 15.88% |
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., ROE, long-term trends, comparison to industry (industrials)
| Generac Holdings Inc. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 24.87% | 15.38% |
| Dec 31, 2020 | 25.22% | 0.24% |
| Dec 31, 2019 | 24.41% | 14.56% |
| Dec 31, 2018 | 31.33% | 17.95% |
| Dec 31, 2017 | 28.48% | 18.24% |
| Dec 31, 2016 | 24.63% | 21.69% |
| Dec 31, 2015 | 16.69% | 16.11% |
| Dec 31, 2014 | 35.65% | 19.68% |
| Dec 31, 2013 | 55.05% | 16.40% |
| Dec 31, 2012 | 20.11% | 17.20% |
| Dec 31, 2011 | 42.22% | 20.10% |
| Dec 31, 2010 | -22.21% | 16.41% |
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).