Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Generac Holdings Inc. pages available for free this week:
- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2010
- Return on Assets (ROA) since 2010
- Price to Book Value (P/BV) since 2010
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Generac Holdings Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Long-term Activity Ratios (Summary)
Generac Holdings Inc., long-term (investment) activity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio remained relatively stable from 2017 to 2019, with values around 7.2. In 2020, it slightly rebounded to 7.23 after a minor dip in 2019, followed by a notable increase to 8.48 in 2021. This indicates an improvement in the efficiency of using fixed assets to generate sales, especially in the last recorded year.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The inclusion of operating lease and right-of-use assets presents a different pattern. The ratio declined steadily from 7.26 in 2017 and 2018 to 6.25 in 2019, continuing to decrease to 6.12 in 2020, before partly recovering to 6.89 in 2021. This trend suggests that incorporating lease assets reflects a more conservative efficiency level that experienced some contraction before recovering.
- Total Asset Turnover
- Total asset turnover remained stable at 0.83 from 2017 through 2019, then decreased to 0.77 in 2020 and remained at that level in 2021. The decline may imply a reduction in overall asset efficiency in generating revenue from 2020 onwards.
- Equity Turnover
- Equity turnover demonstrated a consistent downward trend, falling from 2.99 in 2017 to 1.69 in 2021. This decline reflects a decreasing efficiency in utilizing shareholder equity to generate sales over the five-year period, which may point to capital structure changes or slower sales growth relative to equity.
Net Fixed Asset Turnover
Generac Holdings Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | ||||||
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).
1 2021 Calculation
Net fixed asset turnover = Net sales ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales have exhibited a consistent upward trend over the five-year period from 2017 to 2021. Starting at approximately $1.67 billion in 2017, net sales increased steadily each year, reaching around $3.74 billion by the end of 2021. This represents a significant growth, more than doubling the initial value within five years, indicating strong revenue expansion.
- Property and Equipment, Net
- The net value of property and equipment has also shown a continuous increase from 2017 to 2021. Beginning at approximately $230 million in 2017, the value rose annually to about $441 million in 2021. This upward movement suggests ongoing investment in physical assets, potentially to support operational capacity and future growth.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures revenue generated per dollar of fixed assets, remained relatively stable around 7.2 to 7.3 from 2017 to 2018, then slightly declined to 6.95 in 2019. It recovered to 7.23 in 2020 and improved significantly to 8.48 in 2021. This rising ratio in 2021 indicates enhanced efficiency in utilizing fixed assets to generate sales, which may reflect better asset management or improved operational effectiveness.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Generac Holdings Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Property and equipment, net | ||||||
| Operating lease ROU assets (recorded in Operating lease and other assets) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | ||||||
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).
1 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The financial data for the analyzed periods reveals several noteworthy trends in sales, asset investment, and operational efficiency metrics.
- Net Sales
- There is a consistent and marked increase in net sales over the five-year period. Starting at approximately 1.67 billion USD in 2017, sales grew steadily to reach about 3.74 billion USD by the end of 2021. This represents a substantial growth trajectory, with the most significant year-over-year increase occurring between 2020 and 2021.
- Property and Equipment, Net
- The value of net property and equipment, which includes operating lease right-of-use assets, shows a clear upward trend. The asset base expanded from roughly 230 million USD in 2017 to over 542 million USD by 2021. This growth suggests ongoing investment in fixed assets, possibly to support the increasing scale of operations reflected in the sales figures.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, including operating leased assets, started at a high level of 7.26 in 2017, indicating efficient use of fixed assets to generate sales. It remained relatively stable in 2018 at 7.25 but declined in the subsequent years to a low of 6.12 in 2020. However, in 2021, there was a partial recovery to 6.89. This pattern suggests that while asset growth supported sales expansion, the increase in fixed assets temporarily outpaced sales growth, slightly reducing asset turnover efficiency before improving again in the latest period.
Total Asset Turnover
Generac Holdings Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Total Asset Turnover, Industry | ||||||
| Industrials | ||||||
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).
1 2021 Calculation
Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales have demonstrated a consistent upward trend throughout the observed period, starting at approximately 1.67 billion USD in 2017 and increasing each year to reach about 3.74 billion USD by the end of 2021. The most significant growth appears between 2020 and 2021, with an increase of approximately 50% compared to the previous year. This indicates strong revenue expansion over the five-year span.
- Total Assets
- Total assets have also increased steadily from around 2.02 billion USD in 2017 to nearly 4.88 billion USD by the end of 2021. The growth in assets is substantial, particularly noticeable in the last reported year, where the total assets value experienced a sharp rise of over 50% relative to 2020. This suggests notable investment or acquisition activity, or asset growth correlating with the company's expansion in sales.
- Total Asset Turnover
- The total asset turnover ratio remained fairly stable at 0.83 from 2017 through 2019, indicating that the company generated about 83 cents in sales for each dollar of assets during these years. However, starting in 2020 and continuing into 2021, the ratio declined to 0.77. This decrease implies that asset growth outpaced sales growth slightly in the most recent years, reducing the efficiency with which assets are used to generate revenue.
- Overall Analysis
- The company exhibits strong growth in both sales and assets over the analyzed period. While sales have nearly doubled, total assets have more than doubled, leading to a modest decline in the asset turnover ratio. This suggests that although the company's scale is increasing, the utilization efficiency of its assets has diminished somewhat in the latter years. Management may need to focus on improving asset utilization to enhance operational efficiency alongside continued growth.
Equity Turnover
Generac Holdings Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Stockholders’ equity attributable to Generac Holdings Inc. | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Capital Goods | ||||||
| Equity Turnover, Industry | ||||||
| Industrials | ||||||
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).
1 2021 Calculation
Equity turnover = Net sales ÷ Stockholders’ equity attributable to Generac Holdings Inc.
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrated a consistent upward trajectory over the five-year period. Starting at approximately 1.67 billion USD in 2017, sales increased each year, reaching about 3.74 billion USD by the end of 2021. This represents a significant growth of more than 120%, highlighting strong revenue expansion.
- Stockholders’ Equity Attributable to Generac Holdings Inc.
- Stockholders’ equity exhibited a pronounced increase throughout the period analyzed. Equity rose from around 560 million USD in 2017 to over 2.21 billion USD in 2021. The steady growth, especially noticeable from 2019 onwards, indicates robust capital accumulation and possibly retained earnings or additional equity infusions.
- Equity Turnover Ratio
- The equity turnover ratio showed a declining trend over the same period. It decreased from 2.99 in 2017 to 1.69 in 2021, indicating that the company generated less sales per unit of equity over time. This decline suggests that while equity expanded considerably, sales growth did not keep pace proportionally, potentially reflecting strategic reinvestments or shifts in asset utilization efficiency.