Analysis of Reportable Segments
Generac Holdings Inc. operates in 2 segments: Domestic and International.
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- 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
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Segment Profit Margin
Generac Holdings Inc., profit margin by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Domestic | |||||
| International |
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).
The analysis of the annual reportable segment profit margin data reveals distinct patterns between the domestic and international segments over the five-year period.
- Domestic Segment Profit Margin
- The domestic profit margin demonstrated a general upward trend from 22.42% in 2017 to a peak of 26.97% in 2020, indicating improving profitability within this segment. However, in 2021, the margin declined slightly to 25.14%, suggesting a moderate contraction after reaching its highest point. Overall, the domestic segment maintained relatively strong and stable profitability through the years, with margins consistently above 22%.
- International Segment Profit Margin
- The international segment displayed more variability and a generally lower profit margin relative to the domestic segment. Starting at 7.19% in 2017, the margin increased moderately to 8.09% in 2018 but then experienced a decline to 5.51% in 2019 and further to 5.14% in 2020. This downward trend indicates challenges in maintaining profitability in the international market during that period. Notably, the international margin rebounded substantially to 11.52% in 2021, more than doubling compared to the prior year, which suggests improved operational efficiency or market conditions overseas.
- Comparative Insights
- Throughout the observed period, the domestic segment consistently outperformed the international segment in terms of profit margin percentage. The domestic operations demonstrated both stability and growth with only a slight decrease in the final year, whereas the international segment showed volatility and challenges before a notable recovery in 2021. This disparity highlights potential risks and opportunities associated with international market expansion and operational management.
Segment Profit Margin: Domestic
Generac Holdings Inc.; Domestic; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Adjusted EBITDA | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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
Segment profit margin = 100 × Adjusted EBITDA ÷ Net sales
= 100 × ÷ =
The analysis of the annual domestic segment data reveals several noteworthy trends over the five-year period ending December 31, 2021. There is a consistent upward trajectory in key financial metrics, underlining the growth and operational performance of the segment.
- Adjusted EBITDA
- The Adjusted EBITDA exhibits substantial growth each year, starting at approximately $290.7 million in 2017 and increasing steadily to $795.4 million by 2021. This represents nearly a threefold increase over the period, indicating improving earnings before interest, taxes, depreciation, and amortization, after adjustments. The rapid growth particularly accelerates in 2020 and 2021, reflecting enhanced profitability and possibly improved operational efficiencies or increased scale.
- Net Sales
- Net sales follow a similar upward progression, beginning at about $1.3 billion in 2017 and rising to over $3.16 billion in 2021. The growth in sales is consistent year over year, with a notable surge in 2021, where sales increased by more than 50% compared to 2020. This significant jump suggests strong demand or successful expansion initiatives during the latest year in the data set.
- Segment Profit Margin
- The segment profit margin shows a generally positive trend, increasing from 22.42% in 2017 to a peak of 26.97% in 2020. However, there is a slight decline in margin to 25.14% in 2021 despite the sharp increase in net sales and Adjusted EBITDA. This minor reduction in margin could indicate increased costs or investment activities in 2021 that outpaced revenue growth on a percentage basis but still resulted in higher absolute profit values.
Overall, the data reflects strong growth in sales and Adjusted EBITDA, accompanied by generally improving profitability margins. The notable expansion in both revenue and earnings in the most recent years suggests effective market penetration and operational execution, although the slight dip in profit margin in 2021 may warrant further investigation to understand cost dynamics or strategic investments impacting profitability.
Segment Profit Margin: International
Generac Holdings Inc.; International; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Adjusted EBITDA | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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
Segment profit margin = 100 × Adjusted EBITDA ÷ Net sales
= 100 × ÷ =
- Adjusted EBITDA
- The Adjusted EBITDA experienced fluctuations over the analyzed period. Starting at $27,010 thousand in 2017, it increased to a peak of $35,867 thousand in 2018. Subsequently, it declined in 2019 and 2020, reaching $25,448 thousand and $20,379 thousand respectively. However, in 2021, there was a substantial rebound, with Adjusted EBITDA rising sharply to $66,008 thousand, the highest value in the period.
- Net Sales
- Net sales showed an overall increasing trend with some variability. Beginning at $375,867 thousand in 2017, sales grew steadily to $443,139 thousand in 2018 and further to $461,438 thousand in 2019. In 2020, there was a noticeable decline to $396,392 thousand, followed by a significant recovery in 2021, reaching a new high of $573,134 thousand.
- Segment Profit Margin
- The segment profit margin demonstrated considerable variation. In 2017, the margin was 7.19%, which improved modestly to 8.09% in 2018. However, the margin decreased markedly in the subsequent years, falling to 5.51% in 2019 and further to 5.14% in 2020. A notable improvement occurred in 2021, with the margin increasing significantly to 11.52%, indicating enhanced profitability within the segment.
- Summary of Trends
- Overall, while the segment experienced declines in Adjusted EBITDA, net sales, and profit margin during 2019 and 2020, the data indicates a robust recovery and improved profitability in 2021. The sharp increase in Adjusted EBITDA and segment profit margin in 2021 suggests improved operational efficiency or favorable market conditions. Net sales also reached their highest level in the period, supporting the positive performance of the segment in the latest year.
Segment Return on Assets (Segment ROA)
Generac Holdings Inc., ROA by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Domestic | |||||
| International |
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).
The annual reportable segment Return on Assets (ROA) data presents distinct trends for domestic and international operations over the five-year period. The domestic segment exhibits a generally positive trajectory in ROA, demonstrating increasing efficiency and profitability. Starting at 18.1% in 2017, the ROA rose steadily, reaching 21.26% by the end of 2021. This upward trend suggests improving asset utilization and potentially stronger operational performance within the domestic market.
In contrast, the international segment displays a more fluctuating and comparatively lower ROA throughout the same period. Beginning at 6.53% in 2017, the international ROA experienced a slight decline to 6.43% in 2018, followed by a more marked decrease to 4.69% in 2019 and a further drop to 3.54% in 2020. However, there is a notable rebound in 2021, with ROA increasing to 5.81%. Despite this recovery, the international operations remained consistently less efficient in asset utilization compared to the domestic segment.
Overall, the data indicates stronger and improving profitability in domestic operations, while international operations have faced challenges but showed signs of partial recovery in the most recent year. The divergence in ROA trends highlights differing performance dynamics and asset efficiency between the two segments.
Segment ROA: Domestic
Generac Holdings Inc.; Domestic; segment ROA calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Adjusted EBITDA | |||||
| Assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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
Segment ROA = 100 × Adjusted EBITDA ÷ Assets
= 100 × ÷ =
The financial data reflects a consistent upward trajectory across key financial metrics over the five-year period ending December 31, 2021.
- Adjusted EBITDA
- The Adjusted EBITDA demonstrates a steady and significant increase each year, rising from $290,720 thousand in 2017 to $795,417 thousand in 2021. The most substantial growth appears between 2020 and 2021, where an increase of approximately $232,000 thousand is recorded, indicating enhanced operational profitability and possibly improved cost management or revenue expansion in the domestic segment.
- Assets
- Total assets have expanded notably over the period, beginning at $1,606,606 thousand in 2017 and reaching $3,742,101 thousand by the end of 2021. The asset base more than doubled, with particularly large increments seen from 2019 onwards. This growth suggests increased investments, possibly in fixed assets or working capital, supporting the company’s expanding operations.
- Segment Return on Assets (ROA)
- The Segment ROA exhibits a gradual but consistent improvement, moving from 18.1% in 2017 to 21.26% in 2021. This upward trend indicates growing efficiency in generating earnings from the asset base within the domestic segment. Despite significant asset growth, the ability to maintain and improve ROA highlights effective utilization of resources.
Overall, the data indicates strong operational and asset growth alongside improving profitability ratios, suggesting effective management strategies and robust market performance in the domestic segment during the analyzed period.
Segment ROA: International
Generac Holdings Inc.; International; segment ROA calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Adjusted EBITDA | |||||
| Assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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
Segment ROA = 100 × Adjusted EBITDA ÷ Assets
= 100 × ÷ =
- Adjusted EBITDA
- The Adjusted EBITDA showed a fluctuating trend over the five-year period. It increased from 27,010 thousand US dollars in 2017 to a peak of 35,867 thousand in 2018. Subsequently, it declined to 25,448 thousand in 2019 and further decreased to 20,379 thousand in 2020. However, in 2021, there was a substantial recovery, with Adjusted EBITDA rising sharply to 66,008 thousand, nearly doubling the 2018 peak value.
- Assets
- Assets exhibited consistent growth across the entire period. Starting from 413,358 thousand US dollars in 2017, assets increased each year, reaching 557,760 thousand in 2018 and maintaining a high level with slight fluctuations in 2019 (542,418 thousand) and 2020 (575,826 thousand). In 2021, assets surged significantly to 1,135,679 thousand, nearly doubling from the previous year.
- Segment ROA
- The Segment Return on Assets (ROA) presented a declining trend from 2017 through 2020, dropping from 6.53% to 3.54%. This decrease indicates diminishing efficiency in generating returns from assets during this timeframe. In 2021, ROA reversed this trend, increasing to 5.81%, suggesting enhanced profitability relative to asset base, although it remained slightly below the initial 2017 level.
Segment Asset Turnover
Generac Holdings Inc., asset turnover by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Domestic | |||||
| International |
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).
- Domestic Segment Asset Turnover
- The domestic segment asset turnover ratio displayed a relatively stable trend over the five-year period. Initially, the ratio was 0.81 in 2017, followed by a slight increase to 0.85 in 2018. It then experienced a minor decline to 0.82 in 2019 and further decreased to 0.79 in 2020. However, the ratio rebounded to 0.85 in 2021, reaching the highest point in the period under review. Overall, the domestic asset turnover exhibited modest fluctuations but maintained a range generally between 0.79 and 0.85.
- International Segment Asset Turnover
- The international segment asset turnover ratio showed more pronounced variability and a declining trend over the same timeframe. Starting at 0.91 in 2017, the ratio fell to 0.79 in 2018, followed by a moderate increase to 0.85 in 2019. Afterward, the ratio substantially declined to 0.69 in 2020 and continued decreasing sharply to 0.50 in 2021. This pattern indicates a weakening in asset turnover efficiency within the international segment, with a significant contraction in the latter two years.
- Comparative Insights
- The domestic segment consistently outperformed the international segment in asset turnover from 2020 onward. While the domestic ratio maintained relative stability and displayed resilience, the international ratio experienced a steady drop, particularly pronounced after 2019. This divergence suggests that the domestic operations have been more effective in generating sales relative to their asset base, whereas the international operations faced challenges that negatively impacted asset utilization efficiency.
Segment Asset Turnover: Domestic
Generac Holdings Inc.; Domestic; segment asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Net sales | |||||
| Assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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
Segment asset turnover = Net sales ÷ Assets
= ÷ =
The analysis of the domestic segment reveals a general upward trend in net sales over the five-year period, indicating consistent growth in revenue generation. Net sales increased from approximately $1.30 billion in 2017 to over $3.16 billion in 2021, reflecting a significant expansion in the market or volume of sales delivered.
Assets also demonstrate a steady increase, rising from about $1.61 billion in 2017 to approximately $3.74 billion in 2021. This growth in assets suggests ongoing investment in capital to support business operations and expansion within the domestic segment.
- Segment Asset Turnover Ratio
- The segment asset turnover ratio, which measures the efficiency of asset use to generate sales, shows some fluctuations but remains relatively stable over the period. Starting at 0.81 in 2017, it peaked at 0.85 in 2018, then dipped slightly to 0.79 in 2020 before returning to 0.85 in 2021. This indicates that despite the substantial increase in assets, the company maintained consistent efficiency in utilizing these assets to generate sales.
Overall, the data suggests robust growth in sales and asset base, with sustained efficiency in asset utilization. The significant increase in net sales relative to asset growth in the later years points to an improvement in operational effectiveness or market conditions favoring higher revenue generation. The utilization ratio's resilience during asset growth phases highlights effective management of resources within the domestic reportable segment.
Segment Asset Turnover: International
Generac Holdings Inc.; International; segment asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Net sales | |||||
| Assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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
Segment asset turnover = Net sales ÷ Assets
= ÷ =
- Net Sales
- Net sales exhibited an overall upward trend from 2017 to 2021, increasing from $375.9 million to $573.1 million. There was steady growth from 2017 through 2019, with values rising from $375.9 million to $461.4 million. In 2020, however, net sales declined to $396.4 million before rebounding strongly in 2021 to reach the highest level in the observed period.
- Assets
- Assets increased consistently over the five-year period, starting at $413.4 million in 2017 and more than doubling to approximately $1.14 billion by 2021. This reflects significant asset growth, particularly between 2020 and 2021, where assets nearly doubled from $575.8 million to $1.14 billion.
- Segment Asset Turnover
- Segment asset turnover showed a decreasing trend throughout the period. It declined from 0.91 in 2017 to 0.50 in 2021, indicating that the efficiency with which assets were used to generate sales diminished over time. The decline was relatively steady, with a notable drop occurring between 2019 and 2020.
- Overall Analysis
- While net sales increased overall, the significant growth in assets outpaced sales growth, leading to a notable decrease in asset turnover ratio. This suggests that although the segment expanded its asset base substantially, it became less efficient at generating revenue from those assets. The dip in sales during 2020 may have contributed to the reduction in asset turnover, but the continuous asset buildup up to 2021 indicates a strategic investment or expansion phase that was not immediately matched by proportional revenue gains.
Segment Capital Expenditures to Depreciation
Generac Holdings Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Domestic | |||||
| International |
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).
The ratio of annual reportable segment capital expenditures to depreciation for the domestic segment exhibited notable variability over the five-year period. Beginning at 0.77 in 2017, this ratio increased to 1.07 in 2018, indicating a higher level of capital expenditures relative to depreciation. Following this peak, the ratio decreased to 0.78 in 2019, then rose again to 0.98 in 2020. The most significant change occurred in 2021, when the ratio reached 1.51, reflecting a substantial increase in capital expenditures compared to depreciation within the domestic segment.
In contrast, the international segment displayed a different trend with a lower overall ratio and greater fluctuation. Starting at 0.29 in 2017, the ratio climbed sharply to 0.79 in 2018 and further increased to 1.68 in 2019, suggesting a period of intensified capital investment relative to depreciation. However, this trend reversed in the subsequent years, with the ratio declining to 0.65 in 2020 and further dropping to 0.37 in 2021, indicating a reduced rate of capital expenditures compared to depreciation in the international segment during the final years analyzed.
The comparison between domestic and international segments highlights divergent capital expenditure patterns. While the domestic segment ended the period with an increasing trend and the highest ratio at 1.51, the international segment experienced a peak in 2019 followed by a decline, finishing at 0.37 in 2021. This divergence may suggest a strategic emphasis on capital investment domestically, with more conservative or reduced capital spending internationally toward the end of the period.
Segment Capital Expenditures to Depreciation: Domestic
Generac Holdings Inc.; Domestic; segment capital expenditures to depreciation calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
- Capital expenditures
- Capital expenditures exhibited a generally increasing trend over the five-year period. Starting at $29,258 thousand in 2017, expenditures peaked significantly in 2021 at $100,672 thousand, representing more than a threefold increase from the initial year. There was a notable elevation between 2019 and 2020, where spending rose from $36,007 thousand to $51,867 thousand, and a particularly sharp surge from 2020 to 2021.
- Depreciation and amortization
- Depreciation and amortization figures also showed an overall rise, moving from $37,962 thousand in 2017 to $66,675 thousand in 2021. After a slight decrease between 2017 and 2018, values increased steadily year-over-year from 2018 onwards. The growth in depreciation suggests expanding asset bases or accelerated amortization practices concurrent with capital expenditures.
- Segment capital expenditures to depreciation ratio
- The ratio of capital expenditures to depreciation varied notably over the period, reflecting shifts in investment relative to asset consumption. In 2017, the ratio was below 1.0 at 0.77, indicating capital spending was less than depreciation expense. This ratio exceeded 1.0 in 2018 and 2021, with a peak of 1.51 in 2021, demonstrating a strong increase in capital investment compared to asset depreciation. Fluctuations in middle years suggest differing levels of reinvestment or asset turnover across the years.
Segment Capital Expenditures to Depreciation: International
Generac Holdings Inc.; International; segment capital expenditures to depreciation calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
- Capital Expenditures
- Capital expenditures exhibited a fluctuating pattern over the analyzed period. They initially increased significantly from 4,003 thousand US dollars in 2017 to a peak of 24,795 thousand US dollars in 2019. Following this peak, capital expenditures declined sharply to 10,261 thousand US dollars in 2020 and then further decreased slightly to 9,320 thousand US dollars in 2021.
- Depreciation and Amortization
- Depreciation and amortization showed variability with an overall upward trend. Starting at 14,026 thousand US dollars in 2017, the figure dipped to 11,822 thousand US dollars in 2018. From there, it progressively rose to 14,764 thousand US dollars in 2019 and further increased to 15,753 thousand US dollars in 2020. A substantial jump occurred in 2021, bringing the total to 25,366 thousand US dollars, representing the highest value in the series.
- Segment Capital Expenditures to Depreciation Ratio
- This ratio, which compares capital expenditures to depreciation and amortization, mirrored the fluctuations in the underlying amounts. It started very low at 0.29 in 2017, increased sharply to 0.79 in 2018, and peaked at 1.68 in 2019, indicating capital expenditures significantly outpaced depreciation during that year. Subsequently, the ratio declined markedly to 0.65 in 2020 and further to 0.37 in 2021, suggesting a return to capital expenditures being a smaller proportion relative to depreciation and amortization.
- Summary Insights
- Overall, the data reveals an aggressive investment phase culminating in 2019, which is followed by a significant reduction in capital spending in the two subsequent years. Meanwhile, depreciation and amortization rose substantially by 2021, potentially reflecting increased asset base or changes in asset valuation practices. The capital expenditures to depreciation ratio highlights a period in 2019 of heightened investment activity relative to asset depreciation, which normalized in later years. These trends suggest a strategic shift from rapid asset accumulation toward stabilization or maturation of the asset base in the International segment during the period analyzed.
Net sales
Generac Holdings Inc., net sales by reportable segment
US$ in thousands
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Domestic | |||||
| International | |||||
| Total |
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).
The net sales data over the five-year period exhibits distinct trends in both domestic and international reportable segments, culminating in the aggregated total net sales.
- Domestic Segment
- The domestic net sales show a consistent upward trajectory from 2017 through 2021. Starting at approximately $1.3 billion in 2017, the sales increased steadily each year, with notable acceleration in 2020 and 2021. The jump from about $2.1 billion in 2020 to over $3.1 billion in 2021 marks the most significant single-year growth, indicating robust domestic demand or successful expansion strategies within that period.
- International Segment
- The international net sales present a more variable pattern. Beginning at roughly $376 million in 2017, international sales increased steadily through 2019, reaching nearly $461 million. However, in 2020, a decline is observed, with sales dropping to approximately $396 million. This interruption in growth is potentially attributable to external market conditions or global disruptions impacting international operations. In 2021, the segment rebounded to about $573 million, not only recovering lost ground but also achieving a new peak surpassing the previous highs.
- Total Net Sales
- The combined total net sales reflect the overall positive growth trend driven primarily by domestic sales volume. Total net sales rose from approximately $1.67 billion in 2017 to $3.74 billion in 2021, representing a substantial increase more than doubling across five years. The steady increase is only mildly affected by the international segment's dip in 2020, which is outweighed by substantial domestic growth during the same period. The sharp overall increase in 2021 aligns with increases in both segments, suggesting effective business expansion and market recovery.
Adjusted EBITDA
Generac Holdings Inc., adjusted ebitda by reportable segment
US$ in thousands
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Domestic | |||||
| International | |||||
| Total |
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).
The adjusted EBITDA data for the reportable segments exhibit notable trends over the five-year period ending December 31, 2021. The company's total adjusted EBITDA showed a consistent upward trajectory, increasing from approximately $318 million in 2017 to approximately $861 million in 2021, reflecting robust growth of nearly 170% over the period.
Analyzing the domestic segment specifically, there is a clear and steady increase in adjusted EBITDA. Starting at roughly $291 million in 2017, the domestic segment's adjusted EBITDA rose each year, reaching approximately $795 million by 2021. This indicates sustained growth domestically, with the most significant annual increase occurring between 2020 and 2021, suggesting strong domestic business performance during this later period.
In contrast, the international segment's adjusted EBITDA data show more volatility and overall lower contribution compared to the domestic segment. The segment increased from about $27 million in 2017 to nearly $36 million in 2018 but then declined to approximately $20 million by 2020. However, in 2021, the international segment experienced a notable rebound to about $66 million, more than tripling from the previous year. This suggests either a recovery or expansion in international operations or markets during 2021 after a period of decline.
The proportional contribution of each segment to the total adjusted EBITDA reveals that domestic operations have been the primary driver of overall growth. While the international segment has remained a smaller contributor, its jump in 2021 may indicate emerging opportunities or successful strategic initiatives outside the domestic market.
- Summary of Trends:
- Consistent growth in total adjusted EBITDA over five years, driven primarily by domestic segment expansion.
- Strong and steady increase in domestic segment EBITDA with accelerated growth between 2020 and 2021.
- Fluctuating international segment EBITDA, experiencing a dip from 2018 to 2020 followed by significant recovery in 2021.
- Overall, the domestic segment remains dominant in size and influence, but the international segment's recovery in 2021 could signal positive future performance.
Assets
Generac Holdings Inc., assets by reportable segment
US$ in thousands
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Domestic | |||||
| International | |||||
| Total |
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).
- Domestic Segment Assets
- The domestic segment assets exhibited a consistent upward trend from 2017 to 2021. Beginning at approximately $1.61 billion in 2017, the assets increased steadily each year, reaching about $3.74 billion by the end of 2021. This represents an overall growth of more than 130% over the five-year period, with notable accelerated growth between 2020 and 2021.
- International Segment Assets
- The international segment assets demonstrated a less consistent pattern but with significant growth overall. Starting at about $413 million in 2017, assets rose to $558 million by 2018, followed by a slight decline in 2019 to $542 million. Growth resumed in 2020 with $576 million and then sharply increased to approximately $1.14 billion in 2021, indicating strong expansion in this segment particularly in the latest reported year.
- Total Segment Assets
- Total segment assets mirrored the combined effect of domestic and international trends, showing continuous growth over the five-year span. Total assets rose from roughly $2.02 billion in 2017 to nearly $4.88 billion in 2021. Growth was steady each year, with an especially pronounced increase between 2020 and 2021, driven primarily by growth in the domestic segment but also supported by a substantial increase in international assets.
- Insights
- The data indicates overall strong asset expansion in both domestic and international segments, with domestic assets representing the larger share throughout. The international segment's rapid growth in 2021 suggests a strategic emphasis or successful expansion efforts in international markets. The accelerating pace of asset growth in the final year captures a potential inflection point in the company’s asset accumulation strategy, signaling robust operational scaling or investment activities prior to 2022.
Depreciation and amortization
Generac Holdings Inc., depreciation and amortization by reportable segment
US$ in thousands
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Domestic | |||||
| International | |||||
| Total |
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).
The depreciation and amortization expenses attributed to reportable segments exhibit a clear upward trend over the five-year period. Both domestic and international segments show increases, contributing to an overall rise in total expenses.
- Domestic Segment
- The domestic segment’s depreciation and amortization expenses generally increased from $37,962 thousand in 2017 to $66,675 thousand in 2021. A slight decrease was observed from 2017 to 2018, followed by a consistent upward trajectory through 2021, reflecting a growing asset base or increased investment in depreciable/amortizable assets within the domestic market.
- International Segment
- The international segment recorded fluctuating but overall rising expenses during the period. The value declined from $14,026 thousand in 2017 to $11,822 thousand in 2018, then gradually increased to $25,366 thousand by 2021. The sharp increase between 2020 and 2021 is notable, more than doubling, suggesting either expansion of international operations or acquisition of significant depreciable assets abroad.
- Total
- The total depreciation and amortization expense grew steadily, starting at $51,988 thousand in 2017 and reaching $92,041 thousand in 2021. The increase reflects the combined trends of both segments, with the total expense rising by approximately 77% over the period. This consistent overall growth indicates an increasing investment in capital assets with consequential higher amortization charges.
In summary, the data demonstrates that both domestic and international segments experienced growth in depreciation and amortization expenses, with domestic figures consistently higher but international expenses growing at a faster rate in the later years. The trend suggests expanding capital investments across segments and regions.
Capital expenditures
Generac Holdings Inc., capital expenditures by reportable segment
US$ in thousands
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Domestic | |||||
| International | |||||
| Total |
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).
- Domestic Capital Expenditures
- There is a consistent upward trend in domestic capital expenditures over the five-year period. Starting at $29,258 thousand in 2017, the expenditures increased steadily each year except for a slight decline in 2019 to $36,007 thousand from $38,242 thousand in 2018. Notably, from 2020 to 2021, domestic capital expenditures saw a substantial increase, nearly doubling from $51,867 thousand to $100,672 thousand, marking the most significant rise within the period observed.
- International Capital Expenditures
- International capital expenditures show more variability across the years. Beginning at $4,003 thousand in 2017, the figure more than doubled to $9,359 thousand in 2018. This was followed by a sharp increase in 2019 to $24,795 thousand. However, the amounts then declined substantially to $10,261 thousand in 2020 and slightly decreased further to $9,320 thousand in 2021. The pattern indicates an initial growth phase, peaking in 2019, followed by a marked contraction over the last two years.
- Total Capital Expenditures
- Total capital expenditures, which combine domestic and international figures, demonstrate a general increase throughout the period. The total rose from $33,261 thousand in 2017 to $60,802 thousand in 2019. After a minor increase in 2020 to $62,128 thousand, a significant surge occurred in 2021, with total expenditures reaching $109,992 thousand. This overall growth is primarily driven by the domestic segment's expansion, especially notable in the last year.
- Insights and Observations
- The data reveals a strategic emphasis on domestic capital investments in recent periods, as indicated by the steep rise from 2020 to 2021. The international segment experienced a peak in 2019 but has since declined, suggesting a possible reallocation of resources or changing priorities. The volatility in international capital expenditures contrasts with the relatively stable upward trend in domestic spending. The substantial increase in total capital expenditures in 2021 indicates an overall enhancement in investment activities, likely positioning the company for growth or expansion within its primary domestic market.