Generac Holdings Inc. (NYSE:GNRC)

The data exhibits a significant upward trend in net sales from 2010 through 2021, with some fluctuations.

Net Sales

Net sales show a consistent increase, rising from $592.9 million in 2010 to $3.74 billion in 2021. Key growth periods include 2011 to 2013, when sales more than doubled from $792.0 million to $1.49 billion. A slight decline occurred in 2015, falling to $1.32 billion from the previous year’s $1.46 billion, followed by recovery and continued growth thereafter. The largest growth jump happens between 2020 and 2021, increasing by approximately 50%.

Income from Operations

Income from operations generally trended upward, increasing from about $90.3 million in 2010 to $721.1 million in 2021. There is volatility observed in the mid-period with a peak of $351.5 million in 2013, a decline that continued until 2015 ($179.6 million), and then a steady recovery and growth through 2021.

Net Income (Loss) Attributable to Generac Holdings Inc.

Net income attributable to the company shows a notable recovery and growth pattern despite negative results in 2010 with a loss of $98.0 million. From 2011 onwards, net income remains positive except for 2010, reaching $550.5 million in 2021. After an initial sharp improvement in 2011 ($324.6 million), earnings experienced fluctuations but maintained an upward trend overall. The growth in net income closely follows the pattern seen in income from operations and net sales, indicating improving profitability and operational efficiency over time.

Overall, the company demonstrates significant growth in revenue and profitability during the period, notwithstanding temporary declines in certain years. The upward trends in net sales and income measures suggest strengthened operational performance and financial health over the evaluated timeframe.

The analysis of the annual financial data reveals a consistent upward trend in both current assets and total assets over the observed period. Current assets increased from approximately 272.5 million US dollars at the end of 2010 to about 1.85 billion US dollars by the end of 2021. This represents more than a sixfold growth over eleven years, indicating significant growth in the company's liquid and short-term assets.

Total assets also exhibited steady growth, rising from nearly 1.21 billion US dollars at the end of 2010 to approximately 4.88 billion US dollars by the end of 2021. This more than fourfold increase demonstrates the company's expanding asset base, reflecting investment in both current and long-term assets.

Current Assets Trend

The company showed a robust increase in current assets with some fluctuations. Notably, a dip occurred between 2014 and 2015, where current assets decreased from about 730 million to 661 million US dollars. However, this was followed by a strong recovery and continuous growth in subsequent years, culminating in the highest value of roughly 1.85 billion US dollars in 2021.

Total Assets Trend

Total assets grew consistently every year, with no declines observed in the data. The growth accelerated notably after 2019, where assets rose from approximately 2.67 billion to nearly 4.88 billion US dollars within two years, indicating increased investment or acquisitions that expanded the company's asset portfolio significantly.

Relative Growth and Implications

While current assets grew steadily, total assets increased at a higher absolute level, especially in recent years. This suggests the company may be investing more substantially in long-term assets or fixed assets relative to short-term assets. The steady increase in assets indicates potentially improved operational capacity and possibly expanding business activities.

Overall, the data indicates positive asset growth trends, with the company enhancing both liquidity and long-term asset investments. This may imply strategic growth initiatives and improved financial strength over the reported periods.

The financial data reveals several notable trends in the company's liabilities and equity over the examined period.

Current Liabilities

Current liabilities have exhibited a generally upward trend from 2010 through 2021. Beginning at approximately 86.7 million USD in 2010, these liabilities increased significantly with some fluctuations, reaching over 1.15 billion USD by the end of 2021. A particularly sharp increase occurred between 2019 and 2021, indicating a rise in short-term obligations in recent years.

Total Liabilities

Total liabilities also increased substantially over the period, starting around 769 million USD in 2010 and more than tripling to approximately 2.61 billion USD by 2021. The growth in total liabilities generally outpaced that of current liabilities, implying an increase in long-term obligations in addition to the current obligations. While the growth rate varied over the years, the overall trajectory was clearly upward.

Total Borrowings and Finance Lease Obligations

The total borrowings and finance lease obligations rose from around 657 million USD in 2010 to a peak near 1.2 billion USD in 2013. Following this peak, these borrowings showed a gradual decline and stabilization, settling around 980 million USD by 2021. This pattern suggests that borrowing increased sharply in the early years but was strategically reduced or managed more conservatively in subsequent years despite the overall increase in total liabilities.

Stockholders’ Equity Attributable to Generac Holdings Inc.

Stockholders’ equity showed fluctuations, beginning at approximately 441 million USD in 2010 and dipping to a low of around 317 million USD in 2013. However, after 2013, equity increased steadily and markedly, reaching about 2.21 billion USD by 2021. This substantial growth in equity indicates an enhancement in the company’s net worth and possibly more retained earnings or capital contributions over time, reflecting a positive trend in financial strength.

In summary, while both current and total liabilities have increased considerably over the years, the company has also demonstrated significant growth in stockholders’ equity, especially from 2014 onwards. The reduction in borrowings after 2013 amidst rising overall liabilities could imply an increase in other liability forms or obligations. The trends suggest expanding operations or investments financed through a combination of increased liabilities and equity growth, with improvements in the company’s net equity position contributing to its financial stability.

The analysis of cash flow activities over the period reveals distinct trends in the company's operating, investing, and financing cash flows.

Net Cash Provided by Operating Activities

This metric shows a generally upward trend from 2010 to 2020, starting at $114,481 thousand and reaching a peak of $486,533 thousand in 2020. There is notable growth especially between 2018 and 2020, indicating improving operational efficiency or increased earnings quality. However, in 2021, this figure decreases to $411,156 thousand, marking a decline after the peak but still remaining significantly higher than earlier years.

Net Cash Used in Investing Activities

Investing activities consistently show negative cash flow, indicating ongoing investments or acquisitions. The outflows fluctuate but exhibit substantial cash usage in several years, notably in 2011 ($-95,953 thousand), 2015 ($-104,328 thousand), and a sharp increase in 2021 to $-817,287 thousand. This substantial increase in 2021 diverges from prior patterns and may reflect major capital expenditures or strategic investments in that year.

Net Cash Used in Financing Activities

Financing activities also consistently present negative cash flows, showing net cash outflows across all years. The largest outflow occurred in 2010 with $-186,001 thousand, followed by fluctuations in subsequent years, mostly ranging between approximately $-30,000 thousand and $-195,705 thousand. The more moderate outflows in recent years suggest either reduced debt repayments, lower dividends, or diminished share buybacks, but the 2021 value of $-102,970 thousand is relatively moderate compared to prior peaks.

Overall, the company has demonstrated strengthening operational cash generation capacity, which is offset by aggressive investing activities, particularly in recent years, and steady cash outflows from financing activities. The significant spike in investing cash outflows in 2021 could indicate a strategic investment shift or expansion phase. The stable, positive operating cash flows suggest that the company maintains sufficient internal cash generation to support these activities, despite the increased capital expenditures.

Basic Earnings Per Share

Basic earnings per share displayed a significant recovery and growth trend over the period analyzed. Beginning with a negative value of -1.65 US$ in 2010, the metric rebounded sharply to 4.84 US$ in 2011. Despite some fluctuations, including a dip to 1.14 US$ in 2015, the earnings per share generally trended upwards thereafter, reaching 8.51 US$ by the end of 2021. This indicates a strengthening profitability position throughout the years with particularly strong growth in the last two reported periods.

Diluted Earnings Per Share

The diluted earnings per share followed a very similar pattern to the basic earnings per share. It also began at -1.65 US$ in 2010 and rose to 4.79 US$ in 2011. Minor decreases appeared by 2015, with a value of 1.12 US$, but overall, this metric improved steadily and peaked at 8.3 US$ in 2021. The close alignment to the basic earnings per share values suggests limited dilution impact on earnings across the years.

Dividend Per Share

Dividend per share data is limited, with reported values only for 2012 and 2013 at 6 US$ and 5 US$ respectively. No dividends were reported in other periods, implying either a temporary dividend payout or irregular distribution policy during that specific timeframe. The absence of dividend data before and after these years suggests that dividend payments were either very limited or not consistently maintained.