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 performance as reflected in net income attributable to Generac Holdings Inc. shows a significant turnaround and growth trajectory over the analyzed period. The company experienced a substantial loss in 2010, with a net loss of approximately $97.95 million. However, from 2011 onwards, net income became positive and exhibited a generally upward trend. Notable growth occurred in 2011, with net income rising sharply to about $324.64 million. Subsequently, the net income fluctuated but mostly increased, reaching a peak of approximately $550.49 million in 2021. This reflects a sustained improvement in profitability over the eleven-year span.
Stockholders’ equity attributable to Generac Holdings Inc. also displayed a dynamic pattern. Initially, equity increased markedly from $441.07 million in 2010 to $768.89 million in 2011. Thereafter, it declined for a few years, reaching a low of about $317.07 million in 2013. From 2014 onward, equity demonstrated a robust recovery and continuous growth year over year, rising significantly to $2.21 billion by 2021. This growth in equity suggests effective retention of earnings and possibly capital infusions, strengthening the company's financial foundation over time.
The return on equity (ROE) percentage, which measures the profitability relative to shareholders’ equity, shows considerable volatility. In 2010, the ROE was negative at -22.21%, consistent with the net loss recorded that year. In 2011, ROE surged dramatically to 42.22%, aligning with the sharp increase in net income. Afterward, ROE values fluctuated but remained positive and relatively strong, peaking at 55.05% in 2013. Although there was a gradual downward correction in later years, ROE consistently stayed above 15%, with values around 24-31% from 2017 through 2021. This indicates an overall efficient use of equity to generate profits despite some variability.
- Net Income (Loss) Trends
- Initial large loss in 2010 turned to profits from 2011 onward with significant growth, peaking in 2021.
- Stockholders’ Equity Trends
- Early increase followed by a dip until 2013, then robust and steady growth, more than quadrupling by 2021.
- Return on Equity (ROE) Trends
- Negative in 2010, sharp increase in 2011, fluctuating but overall strong and positive returns thereafter.
Overall, the data reveals a company that experienced early challenges but successfully improved profitability and shareholder value over time. The consistent upward trends in net income and equity in the latter years, along with sustained ROE levels above 20% in recent periods, indicate effective management and strengthening financial health.
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. | 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. | 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).