Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Generac Holdings Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Gross profit margin
- The gross profit margin exhibits a generally upward trend from the first available data point in March 2017 through mid-2021, increasing from 34.81% to a peak of 39.31% in June 2021. After this peak, there is a noticeable decline through the subsequent quarters, falling to 34.17% by June 2022. This pattern suggests improving efficiency or pricing power up until mid-2021, followed by some margin pressure thereafter.
- Operating profit margin
- The operating profit margin shows a consistent incremental increase from 15.01% in March 2017 to a high of 21.91% in September 2021. Following this peak, the margin decreases over the next three quarters to 16.24% by June 2022. This trend indicates strengthening operational performance and cost management until late 2021 before experiencing deterioration in profitability during 2022.
- Net profit margin
- Net profit margin also follows a generally rising trajectory from 9.53% in March 2017 to a maximum of 16.18% in September 2021. After reaching this level, a decline is evident, dropping back to 12.28% by June 2022. This reflects improvements in bottom-line profitability aligned with operating margin trends, but a weakening of net profitability in the recent periods.
- Return on equity (ROE)
- ROE shows growth from 28.48% in March 2017, peaking at 34.93% in December 2017 initially, then again rising to 31.16% in September 2021 after some fluctuation. However, there is a declining trend from late 2021 onward, with ROE falling to 22.52% by June 2022. This suggests that shareholder returns improved significantly over the earlier years but faced pressure in more recent quarters.
- Return on assets (ROA)
- ROA increases steadily from 7.89% in March 2017 to reach a high of 13.92% in September 2021, indicating more efficient asset utilization over time. A subsequent decline occurs thereafter, with ROA dropping to 9.95% in June 2022. This pattern is consistent with other profitability indicators, demonstrating overall enhanced performance followed by weakening returns on assets recently.
In summary, the financial ratios across margins, return on equity, and return on assets collectively depict a period of improving profitability and operational efficiency from 2017 through mid to late 2021. This improvement peaks mostly around the third quarter of 2021. Subsequently, all key performance metrics indicate a marked decline during 2022, suggesting emerging challenges affecting margin maintenance, operational efficiency, and overall returns. The downturn in these profitability ratios points to potential cost pressures, pricing challenges, or other operational factors impacting financial performance in the most recent periods.
Return on Sales
Return on Investment
Gross Profit Margin
Generac Holdings Inc., gross profit margin calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Gross profit | 456,985) | 360,748) | 362,539) | 335,994) | 339,735) | 321,814) | 300,202) | 276,149) | 208,983) | 172,320) | 222,222) | 217,517) | 195,838) | 162,175) | 204,306) | 200,334) | 178,473) | 141,927) | 179,702) | 157,469) | 134,460) | 110,486) | |||||||
| Net sales | 1,291,391) | 1,135,856) | 1,067,071) | 942,698) | 919,981) | 807,434) | 761,082) | 701,355) | 546,848) | 475,915) | 590,932) | 601,135) | 541,916) | 470,353) | 563,404) | 562,388) | 497,581) | 400,091) | 488,002) | 457,253) | 395,376) | 331,814) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | 34.17% | 34.41% | 36.39% | 37.82% | 38.81% | 39.31% | 38.53% | 38.00% | 37.07% | 36.56% | 36.19% | 35.82% | 35.67% | 35.60% | 35.83% | 35.96% | 35.68% | 35.25% | 34.81% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Boeing Co. | 2.74% | 3.20% | 4.84% | -0.25% | -1.35% | -7.82% | -9.78% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Caterpillar Inc. | 25.52% | 25.71% | 26.30% | 27.08% | 26.83% | 25.98% | 25.47% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Eaton Corp. plc | 32.55% | 32.36% | 32.28% | 32.14% | 32.23% | 30.80% | 30.52% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| GE Aerospace | 25.22% | 24.26% | 24.19% | 24.97% | 22.43% | 18.80% | 17.26% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Honeywell International Inc. | 34.22% | 32.95% | 31.98% | 32.34% | 32.06% | 31.52% | 32.07% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lockheed Martin Corp. | 13.39% | 13.36% | 13.52% | 13.34% | 13.00% | 13.26% | 13.23% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| RTX Corp. | 20.17% | 19.94% | 19.40% | 17.59% | 15.79% | 13.98% | 15.08% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Gross profit margin = 100
× (Gross profitQ2 2022
+ Gross profitQ1 2022
+ Gross profitQ4 2021
+ Gross profitQ3 2021)
÷ (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
= 100 × (456,985 + 360,748 + 362,539 + 335,994)
÷ (1,291,391 + 1,135,856 + 1,067,071 + 942,698)
= 34.17%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's profitability and sales performance over the observed periods.
- Gross Profit
- There is a consistent upward trend in gross profit from the first quarter of 2017 through mid-2022. Starting at approximately 110.5 million US dollars in the first quarter of 2017, gross profit increased significantly, reaching over 456.9 million US dollars by mid-2022. Periodic fluctuations are visible, with some short-term decreases, such as between the end of 2019 and early 2020, but the overall direction is positive, indicating growth in absolute profitability.
- Net Sales
- Net sales exhibit a similar upward trajectory. Beginning around 331.8 million US dollars in the first quarter of 2017, net sales steadily increase, with occasional dips aligning roughly with those in gross profit. By the middle of 2022, net sales surpass 1.29 billion US dollars, marking a substantial rise compared to earlier periods. The sales growth appears robust and persistent, supporting the gross profit increases.
- Gross Profit Margin
- Although the actual gross profit values grew significantly, the gross profit margin percentage data begins only from the first quarter of 2018. At that time, margins were approximately 34.81%. Over the subsequent quarters, the gross profit margin generally increased, reaching a peak of around 39.31% in the third quarter of 2021. This suggests improving efficiency or better pricing power during this period. However, post-peak, the margin shows a decline toward 34.17% by the second quarter of 2022, indicating a recent reduction in profitability relative to sales.
In summary, both gross profit and net sales demonstrate strong growth over the analyzed periods, signifying expansion in the company’s business scale. The gross profit margin improved steadily over several years, reflecting enhanced operational efficiency or favorable market conditions. Nonetheless, the slight recent contraction in margin signals potential cost pressures or pricing challenges that may merit further investigation to sustain profitability gains.
Operating Profit Margin
Generac Holdings Inc., operating profit margin calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Income from operations | 216,844) | 154,735) | 175,481) | 173,579) | 182,952) | 189,124) | 171,054) | 155,637) | 89,553) | 62,862) | 104,508) | 105,556) | 90,926) | 71,173) | 108,848) | 106,519) | 85,467) | 56,347) | 94,073) | 72,859) | 52,287) | 31,845) | |||||||
| Net sales | 1,291,391) | 1,135,856) | 1,067,071) | 942,698) | 919,981) | 807,434) | 761,082) | 701,355) | 546,848) | 475,915) | 590,932) | 601,135) | 541,916) | 470,353) | 563,404) | 562,388) | 497,581) | 400,091) | 488,002) | 457,253) | 395,376) | 331,814) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | 16.24% | 16.89% | 19.30% | 20.89% | 21.91% | 21.49% | 19.28% | 17.82% | 16.37% | 16.46% | 16.88% | 17.30% | 17.65% | 17.77% | 17.65% | 17.58% | 16.75% | 15.83% | 15.01% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Boeing Co. | -6.98% | -6.53% | -4.66% | -10.80% | -12.18% | -20.36% | -21.95% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Caterpillar Inc. | 13.81% | 13.87% | 14.27% | 14.56% | 13.82% | 12.32% | 11.67% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Eaton Corp. plc | 16.33% | 15.97% | 15.69% | 15.50% | 12.54% | 10.81% | 11.45% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| GE Aerospace | 8.12% | 7.31% | 8.58% | 7.86% | 6.82% | 4.72% | 5.49% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Honeywell International Inc. | 17.31% | 17.37% | 18.03% | 18.36% | 17.95% | 16.90% | 17.45% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lockheed Martin Corp. | 13.47% | 13.50% | 13.61% | 13.50% | 13.19% | 13.19% | 13.22% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| RTX Corp. | 7.81% | 7.75% | 7.70% | 5.93% | 4.61% | -3.59% | -3.34% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Operating profit margin = 100
× (Income from operationsQ2 2022
+ Income from operationsQ1 2022
+ Income from operationsQ4 2021
+ Income from operationsQ3 2021)
÷ (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
= 100 × (216,844 + 154,735 + 175,481 + 173,579)
÷ (1,291,391 + 1,135,856 + 1,067,071 + 942,698)
= 16.24%
2 Click competitor name to see calculations.
The financial data reflects a general upward trend in net sales from March 31, 2017, through June 30, 2022. Starting at approximately 332 million US dollars, net sales show consistent quarterly growth, reaching over 1.29 billion US dollars by mid-2022. This indicates significant revenue expansion over the analyzed period.
Income from operations exhibited a similar growth trajectory, with initial values around 31.8 million US dollars in early 2017 and peaking near 216.8 million US dollars in the second quarter of 2022. While some fluctuations are visible, the overall pattern suggests increasing operational profitability aligned with sales growth.
The operating profit margin data, available beginning in the first quarter of 2018, indicates percentage profitability relative to net sales. Margins improved steadily from approximately 15% in early 2018 to a peak near 21.9% by late 2021. This reflects enhanced efficiency or cost management as revenues expanded. However, a slight decline in the margin is noted in the first two quarters of 2022, decreasing to around 16.2%, which may point to increased costs or pricing pressures during this period.
Overall, the company demonstrated strong revenue growth accompanied by rising operating income and expanding profit margins for most of the timeframe. The brief margin contraction observed in early 2022 could warrant further investigation to understand underlying causes. Nonetheless, the data suggests a robust operational performance with increasing scale and profitability over time.
Net Profit Margin
Generac Holdings Inc., net profit margin calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income attributable to Generac Holdings Inc. | 156,359) | 113,858) | 142,895) | 131,570) | 127,036) | 148,993) | 125,001) | 114,970) | 66,145) | 44,460) | 69,614) | 75,574) | 61,958) | 44,861) | 75,575) | 75,776) | 53,261) | 33,645) | 81,175) | 39,709) | 25,660) | 12,842) | |||||||
| Net sales | 1,291,391) | 1,135,856) | 1,067,071) | 942,698) | 919,981) | 807,434) | 761,082) | 701,355) | 546,848) | 475,915) | 590,932) | 601,135) | 541,916) | 470,353) | 563,404) | 562,388) | 497,581) | 400,091) | 488,002) | 457,253) | 395,376) | 331,814) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | 12.28% | 12.68% | 14.73% | 15.52% | 16.18% | 16.16% | 14.11% | 12.75% | 11.55% | 11.39% | 11.43% | 11.85% | 12.07% | 11.92% | 11.77% | 12.52% | 11.27% | 10.35% | 9.53% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Boeing Co. | -8.69% | -8.00% | -6.75% | -13.50% | -14.30% | -20.87% | -20.42% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Caterpillar Inc. | 13.19% | 13.02% | 13.47% | 11.28% | 10.17% | 8.53% | 7.68% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Eaton Corp. plc | 11.70% | 11.21% | 10.92% | 10.60% | 9.86% | 8.05% | 7.90% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| GE Aerospace | -6.18% | -6.70% | -9.17% | -0.06% | -3.39% | -4.68% | 7.81% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Honeywell International Inc. | 14.74% | 15.30% | 16.11% | 15.80% | 14.65% | 14.17% | 14.64% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lockheed Martin Corp. | 7.33% | 9.45% | 9.42% | 9.13% | 10.69% | 10.53% | 10.45% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| RTX Corp. | 6.84% | 6.47% | 6.00% | 5.20% | 3.51% | -4.44% | -6.22% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Net profit margin = 100
× (Net income attributable to Generac Holdings Inc.Q2 2022
+ Net income attributable to Generac Holdings Inc.Q1 2022
+ Net income attributable to Generac Holdings Inc.Q4 2021
+ Net income attributable to Generac Holdings Inc.Q3 2021)
÷ (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
= 100 × (156,359 + 113,858 + 142,895 + 131,570)
÷ (1,291,391 + 1,135,856 + 1,067,071 + 942,698)
= 12.28%
2 Click competitor name to see calculations.
The financial data reveals progressive growth in key performance indicators over the examined quarters. Net sales exhibit a strong upward trajectory, increasing from $331.8 million in the first quarter of 2017 to approximately $1.29 billion by the second quarter of 2022. This growth is relatively consistent, with minor seasonal fluctuations but an evident overall increase, reflecting expanding market penetration or product demand.
Net income attributable to the company aligns with the rising sales trend, beginning at $12.8 million in early 2017 and reaching $156.4 million by mid-2022. The increase is marked by some variability, including substantial jumps in the latter periods of 2020 and throughout 2021, suggesting periods of improved profitability possibly due to operational efficiencies or favorable market conditions.
Examining the net profit margin, data is incomplete for initial quarters but from the period starting March 2018 onward, margins demonstrate a steady improvement. Beginning at 9.53%, the profit margin ascends to a peak of around 16.18% by September 2021, before slightly declining to approximately 12.28% in the second quarter of 2022. This trend indicates enhanced profitability and cost management initially, with a recent slight contraction possibly due to increased costs or pricing pressures.
In summary, the company has exhibited robust growth in both revenue and net income over the reported period, coupled with improving profitability margins for a significant portion of the timeframe. The recent decline in profit margin merits monitoring to ascertain if it is a temporary fluctuation or indicative of a longer-term trend. Overall, the financial indicators suggest a prosperous expansion phase with efficient profit generation.
Return on Equity (ROE)
Generac Holdings Inc., ROE calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income attributable to Generac Holdings Inc. | 156,359) | 113,858) | 142,895) | 131,570) | 127,036) | 148,993) | 125,001) | 114,970) | 66,145) | 44,460) | 69,614) | 75,574) | 61,958) | 44,861) | 75,575) | 75,776) | 53,261) | 33,645) | 81,175) | 39,709) | 25,660) | 12,842) | |||||||
| Stockholders’ equity attributable to Generac Holdings Inc. | 2,418,879) | 2,308,134) | 2,213,774) | 1,782,072) | 1,655,900) | 1,524,730) | 1,390,293) | 1,230,192) | 1,097,730) | 1,023,642) | 1,032,382) | 934,264) | 865,940) | 804,420) | 760,549) | 698,163) | 617,012) | 570,068) | 559,552) | 473,147) | 427,922) | 420,467) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | 22.52% | 22.33% | 24.87% | 29.89% | 31.16% | 29.85% | 25.22% | 24.00% | 23.30% | 24.58% | 24.41% | 27.61% | 29.81% | 31.01% | 31.33% | 34.93% | 33.68% | 31.61% | 28.48% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Caterpillar Inc. | 42.96% | 38.07% | 39.37% | 30.90% | 26.09% | 20.73% | 19.56% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Eaton Corp. plc | 14.12% | 13.35% | 13.06% | 12.95% | 12.23% | 9.54% | 9.44% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| GE Aerospace | -12.75% | -12.20% | -16.17% | -0.11% | -7.29% | -9.82% | 16.04% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Honeywell International Inc. | 28.96% | 28.58% | 29.85% | 30.67% | 27.73% | 25.71% | 27.23% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lockheed Martin Corp. | 41.16% | 62.10% | 57.62% | 62.90% | 109.51% | 110.16% | 113.60% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| RTX Corp. | 6.34% | 5.79% | 5.29% | 4.65% | 3.07% | -3.74% | -4.88% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
ROE = 100
× (Net income attributable to Generac Holdings Inc.Q2 2022
+ Net income attributable to Generac Holdings Inc.Q1 2022
+ Net income attributable to Generac Holdings Inc.Q4 2021
+ Net income attributable to Generac Holdings Inc.Q3 2021)
÷ Stockholders’ equity attributable to Generac Holdings Inc.
= 100 × (156,359 + 113,858 + 142,895 + 131,570)
÷ 2,418,879 = 22.52%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several important trends in profitability and financial position over the periods presented.
- Net Income Attributable to Generac Holdings Inc.
-
Net income shows an overall expanding trend despite some fluctuations. Beginning with a figure of 12,842 thousand US dollars in the first quarter of 2017, net income increased notably, peaking at 81,175 thousand US dollars by the last quarter of 2017. This suggests strong growth during that year.
From 2018 onwards, net income fluctuated, with quarterly figures ranging roughly between 33,645 and 75,776 thousand US dollars, indicating variability in profitability but at a higher level than in 2017. During 2020, net income experienced further significant increases, particularly notable in the third and fourth quarters, reaching peaks over 100,000 thousand US dollars.
Into 2021 and the first half of 2022, net income continued to be strong, with quarterly results mostly above 110,000 thousand US dollars, although some quarters showed minor declines. The overall trajectory indicates sustained profitability growth with some cyclicality.
- Stockholders’ Equity Attributable to Generac Holdings Inc.
-
Stockholders’ equity demonstrated consistent growth across the time periods. Starting from approximately 420 million US dollars in early 2017, equity increased steadily each quarter without any marked decreases.
By the end of 2017, equity had risen to about 560 million US dollars, and this positive momentum continued through 2018 and 2019. By the end of 2019, equity had nearly doubled compared to the initial period, reaching over 1 billion US dollars.
Equity levels advanced further throughout 2020 and 2021, culminating in over 2.2 billion US dollars by the first quarter of 2022. This steady increase indicates strong capital retention and growth in net assets over the observed timeframe.
- Return on Equity (ROE)
-
Return on Equity, a key profitability metric, was unavailable for early 2017 but from the first quarter of 2018 demonstrates fluctuating yet robust performance. ROE started high at 28.48% and peaked around the fourth quarter of 2018 at approximately 34.93%, evidencing efficient generation of profit relative to equity at that time.
Following this peak, ROE exhibited a gradual downward trend through 2019 and into 2020, decreasing to a low in the mid-20% range. Despite this reduction, ROE remained strong, reflecting solid earnings relative to shareholders' equity.
The metric increased again in certain quarters of 2021, reaching values near or above 30%, before declining once more in early 2022 to around 22%. The fluctuations suggest some variability in the company's ability to convert equity into net income but overall sustained above-average returns for the period evaluated.
In summary, the financial data show a company experiencing notable growth in net income and stockholders’ equity over the five-year span, with a generally stable and strong return on equity. Despite some periodic variability in profitability metrics, the trends suggest effective management of resources and an improving financial position.
Return on Assets (ROA)
Generac Holdings Inc., ROA calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income attributable to Generac Holdings Inc. | 156,359) | 113,858) | 142,895) | 131,570) | 127,036) | 148,993) | 125,001) | 114,970) | 66,145) | 44,460) | 69,614) | 75,574) | 61,958) | 44,861) | 75,575) | 75,776) | 53,261) | 33,645) | 81,175) | 39,709) | 25,660) | 12,842) | |||||||
| Total assets | 5,472,951) | 5,151,533) | 4,877,780) | 4,100,430) | 3,706,926) | 3,422,138) | 3,235,423) | 2,974,075) | 2,767,625) | 2,654,077) | 2,665,669) | 2,594,121) | 2,523,109) | 2,473,722) | 2,426,314) | 2,332,673) | 2,209,275) | 2,077,468) | 2,019,964) | 2,000,974) | 1,887,530) | 1,867,265) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | 9.95% | 10.00% | 11.29% | 12.99% | 13.92% | 13.30% | 10.84% | 9.93% | 9.24% | 9.48% | 9.45% | 9.94% | 10.23% | 10.08% | 9.82% | 10.45% | 9.41% | 8.67% | 7.89% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||
| Boeing Co. | -3.90% | -3.60% | -3.03% | -5.77% | -5.92% | -7.85% | -7.80% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Caterpillar Inc. | 8.33% | 7.90% | 7.84% | 6.37% | 5.37% | 4.26% | 3.83% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Eaton Corp. plc | 6.58% | 6.30% | 6.30% | 6.06% | 5.12% | 4.20% | 4.43% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| GE Aerospace | -2.38% | -2.48% | -3.28% | -0.02% | -1.03% | -1.34% | 2.25% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Honeywell International Inc. | 8.16% | 8.29% | 8.60% | 8.53% | 7.78% | 7.28% | 7.40% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lockheed Martin Corp. | 9.09% | 12.06% | 12.41% | 11.69% | 13.71% | 13.52% | 13.47% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| RTX Corp. | 2.81% | 2.63% | 2.39% | 2.09% | 1.37% | -1.67% | -2.17% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
ROA = 100
× (Net income attributable to Generac Holdings Inc.Q2 2022
+ Net income attributable to Generac Holdings Inc.Q1 2022
+ Net income attributable to Generac Holdings Inc.Q4 2021
+ Net income attributable to Generac Holdings Inc.Q3 2021)
÷ Total assets
= 100 × (156,359 + 113,858 + 142,895 + 131,570)
÷ 5,472,951 = 9.95%
2 Click competitor name to see calculations.
- Net Income Attributable to Generac Holdings Inc.
- The net income demonstrates a consistent upward trend over the observed periods, with some fluctuations in quarterly results. Beginning at $12.8 million in March 2017, net income generally increased, reaching a peak of approximately $156.4 million by June 2022. Notably, there was significant growth in 2020 and 2021, with quarterly results surpassing prior years substantially. Despite this overall increase, some quarters show variability, such as declines or plateauing in early 2020 and again in mid-2022.
- Total Assets
- Total assets rose steadily throughout the entire period, reflecting expansion and asset accumulation. Starting at approximately $1.87 billion in March 2017, assets expanded almost every quarter, exceeding $5.47 billion by June 2022. The growth rate appears to accelerate notably after 2019, with substantial quarterly increases especially evident from 2020 onward, indicating possible acquisitions, investments, or organic growth.
- Return on Assets (ROA)
- ROA data begins from March 2018 and exhibits a generally positive and improving trend. Initial values were around 7.89% and steadily increased to peak at 13.92% in September 2021. After this peak, ROA experienced a moderate decline but remained strong, around 10.0% by mid-2022. This pattern suggests enhanced efficiency in asset utilization to generate profits up to late 2021, followed by a slight normalization.
- Overall Observations
- The company shows robust financial growth across key indicators. The steady increase in total assets alongside rising net income and improving ROA indicates successful expansion and effective use of resources. The peak in profitability ratios around 2021 suggests a period of especially strong operational performance. Despite minor declines in certain quarters, the general trajectory points to a strengthening financial position and improved profitability over the evaluated time frame.