Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2010
- Return on Equity (ROE) since 2010
- Current Ratio since 2010
- Price to Operating Profit (P/OP) since 2010
- Analysis of Revenues
- Analysis of Debt
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Long-term Activity Ratios (Summary)
Generac Holdings Inc., long-term (investment) activity 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).
The analysis of the quarterly financial ratios reveals distinct trends across net fixed asset turnover, total asset turnover, and equity turnover over the periods presented.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits an overall upward trend from March 2018 through June 2022. Starting at 7.26 in March 2018, the ratio maintains a generally stable level around 7.0 to 7.2 through 2020, followed by a notable increase beginning in 2021. It rises steadily from 7.23 in December 2020 to reach a peak of 9.95 in June 2022. This upward movement indicates an increasing efficiency in generating revenue from fixed assets over time.
- Total Asset Turnover
- The total asset turnover ratio experiences minor fluctuations within a narrow range during the observed periods. Beginning at approximately 0.83 in March 2018, the ratio remains relatively stable, generally hovering between 0.77 and 0.86. The highest values occur mid-2019 and mid-2021, reaching up to 0.86, while the lowest values around 0.77 appear intermittently in early 2021 and again in 2022. Such consistency suggests a steady ability to generate sales from total assets without significant gains or declines over time.
- Equity Turnover
- Equity turnover shows a declining trend from March 2018 through March 2022. The ratio decreases from 2.99 in March 2018 to a low point of approximately 1.69 by March 2022. There are occasional minor recoveries, notably reaching about 1.93 in late 2021, but the overall trajectory is downward. This suggests a gradual reduction in the efficiency with which equity is utilized to generate revenue during the timeframe analyzed.
Net Fixed Asset Turnover
Generac Holdings Inc., net fixed asset turnover 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 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. | |||||||||||||||||||||||||||||
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 fixed asset turnover
= (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
÷ Property and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The data indicates a consistent upward trajectory in net sales over the observed quarters, with apparent seasonal fluctuations. Starting from US$331,814 thousand in the first quarter of 2017, net sales show a general increase, reaching US$1,291,391 thousand by the second quarter of 2022. There are periodic dips, for instance, in the first quarter of 2018, net sales decreased from the prior quarter yet resumed growth subsequently. The highest quarterly net sales were recorded in the second quarter of 2022.
Property and equipment, net, exhibits steady growth over the period, starting at US$215,390 thousand in the first quarter of 2017 and rising to US$446,007 thousand by the second quarter of 2022. This reflects a gradual investment or expansion in fixed assets. Growth in property and equipment tends to be smoother and less volatile compared to net sales, suggesting planned capital expenditures rather than reactive purchases.
The net fixed asset turnover ratio, available from the fourth quarter of 2017 onward, fluctuates but generally remains in a positive range indicating operational efficiency. The ratio began at 7.26 and shows minor variation around 7.0 to 8.0 for most quarters. Notably, there is an increase towards the later periods, peaking at 9.95 in the second quarter of 2022. This upward trend suggests more effective utilization of fixed assets to generate sales, implying improvements in asset management or an increase in sales outpacing asset growth.
- Net Sales
- Exhibits a clear upward growth trajectory with periodic seasonal dips; almost quadrupled from 2017 to mid-2022.
- Property and Equipment, Net
- Steady, consistent increase reflecting ongoing investment in fixed assets; growth rate is stable without significant volatility.
- Net Fixed Asset Turnover
- Shows a relatively stable performance with gradual improvement; indicates increasing efficiency in generating sales from fixed assets by mid-2022.
In summary, the analysis highlights a pattern of substantial revenue growth accompanied by measured expansion in property and equipment, with asset utilization efficiency improving over time. This underscores enhanced operational effectiveness and strategic asset management contributing to the company's performance throughout the analyzed periods.
Total Asset Turnover
Generac Holdings Inc., total asset turnover 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 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. | |||||||||||||||||||||||||||||
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
Total asset turnover
= (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a general upward trend over the analyzed quarters. Starting from approximately 331.8 million USD in March 2017, sales increased steadily to reach about 1.29 billion USD by June 2022. Although there were fluctuations within this period, such as a slight decline in the first quarter of 2018 and another dip around the first quarter of 2020, the overall trajectory remained positive with significant growth particularly evident from 2020 onwards. The most notable acceleration occurred between March 2020 and June 2022, where sales nearly tripled.
- Total Assets
- Total assets followed a consistent and continuous growth pattern throughout the period. Beginning at around 1.87 billion USD in March 2017, the asset base expanded to over 5.47 billion USD by June 2022. There were no recorded declines, indicating ongoing investment or asset accumulation. The growth pace appeared to intensify after 2019, with total assets increasing more rapidly during the years 2020 to 2022 compared to prior periods.
- Total Asset Turnover
- The total asset turnover ratio, available from September 2017 onward, generally hovered around the range of 0.77 to 0.86. Early values were close to 0.83 to 0.85, with a slight decline observed during 2020, reaching as low as 0.77 in March 2022. Toward mid-2022, this ratio showed signs of modest recovery. These fluctuations suggest varied efficiency in utilizing assets to generate sales, with a slight deterioration in asset turnover efficiency coinciding with rapid asset growth in recent years.
Equity Turnover
Generac Holdings Inc., equity turnover 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 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. | |||||||||||||||||||||||||||||
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
Equity turnover
= (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
÷ Stockholders’ equity attributable to Generac Holdings Inc.
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the operational and financial performance over the examined periods.
- Net Sales
- Net sales exhibit an overall upward trend throughout the quarters. Starting at approximately $331.8 million in the first quarter of 2017, sales increased steadily with minor fluctuations, reaching a peak of around $1.29 billion by the second quarter of 2022. This represents near a fourfold growth over the observed timeline. Periodic quarters such as Q4 2018 and Q1 2020 show slight dips or slower growth, but the general direction remains positive, indicating expanding market reach or product demand.
- Stockholders’ Equity Attributable to Generac Holdings Inc.
- Stockholders’ equity also shows a consistent increasing trend, advancing from about $420.5 million at the beginning of 2017 to approximately $2.42 billion by mid-2022. The increase appears steady without significant volatility, reflecting retained earnings growth, possible equity issuances, or value appreciation. There is an evident acceleration in equity growth starting from mid-2020 onwards, which may suggest enhanced profitability or capital inflows during this period.
- Equity Turnover Ratio
- The equity turnover ratio demonstrates a declining trend from early 2017 to mid-2022. Initially, the ratio was approximately 3.0 in late 2017, indicating the company's net sales were about three times its equity base. However, this ratio gradually declined to around 1.7-1.8 by mid-2022. The decreasing equity turnover ratio suggests that sales are growing at a slower rate relative to the equity base expansion, potentially indicating increasing capital intensity or more conservative asset utilization.
In summary, the company shows strong revenue growth alongside expanding equity, though the efficiency of equity in generating sales appears to be diminishing over time. This could reflect strategic investment in assets, increased working capital requirements, or other factors influencing capital structure and asset management. Continued monitoring of these trends is advisable to assess sustainability and capital efficiency.