Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Generac Holdings Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Generac Holdings Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Generac Holdings Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Generac Holdings Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Generac Holdings Inc. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Generac Holdings Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Generac Holdings Inc. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Generac Holdings Inc. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |
Inventory Turnover
Generac Holdings Inc., inventory 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) | ||||||
| Costs of goods sold | 2,377,102) | 1,527,546) | 1,406,584) | 1,298,424) | 1,090,328) | |
| Inventories | 1,089,705) | 603,317) | 522,024) | 544,750) | 380,341) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 2.18 | 2.53 | 2.69 | 2.38 | 2.87 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Boeing Co. | 0.75 | 0.78 | — | — | — | |
| Caterpillar Inc. | 2.53 | 2.55 | — | — | — | |
| Eaton Corp. plc | 4.48 | 5.88 | — | — | — | |
| GE Aerospace | 3.40 | 3.80 | — | — | — | |
| Honeywell International Inc. | 4.29 | 4.94 | — | — | — | |
| Lockheed Martin Corp. | 19.45 | 16.01 | — | — | — | |
| RTX Corp. | 5.65 | 5.11 | — | — | — | |
| Inventory Turnover, Sector | ||||||
| Capital Goods | 2.28 | 2.28 | — | — | — | |
| Inventory Turnover, Industry | ||||||
| Industrials | 4.04 | 3.72 | — | — | — | |
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
Inventory turnover = Costs of goods sold ÷ Inventories
= 2,377,102 ÷ 1,089,705 = 2.18
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Generac Holdings Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Receivables Turnover
Generac Holdings Inc., receivables 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 | 3,737,184) | 2,485,200) | 2,204,336) | 2,023,464) | 1,672,445) | |
| Accounts receivable, less allowance for credit losses | 546,466) | 374,906) | 319,538) | 326,133) | 280,002) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 6.84 | 6.63 | 6.90 | 6.20 | 5.97 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Boeing Co. | 23.58 | 29.75 | — | — | — | |
| Caterpillar Inc. | 5.68 | 5.33 | — | — | — | |
| Eaton Corp. plc | 5.95 | 6.15 | — | — | — | |
| GE Aerospace | 4.55 | 4.37 | — | — | — | |
| Honeywell International Inc. | 5.04 | 4.78 | — | — | — | |
| Lockheed Martin Corp. | 34.15 | 33.06 | — | — | — | |
| RTX Corp. | 6.66 | 6.11 | — | — | — | |
| Receivables Turnover, Sector | ||||||
| Capital Goods | 7.57 | 7.30 | — | — | — | |
| Receivables Turnover, Industry | ||||||
| Industrials | 7.76 | 7.58 | — | — | — | |
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
Receivables turnover = Net sales ÷ Accounts receivable, less allowance for credit losses
= 3,737,184 ÷ 546,466 = 6.84
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Generac Holdings Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Payables Turnover
Generac Holdings Inc., payables 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) | ||||||
| Costs of goods sold | 2,377,102) | 1,527,546) | 1,406,584) | 1,298,424) | 1,090,328) | |
| Accounts payable | 674,208) | 330,247) | 261,977) | 328,091) | 233,639) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 3.53 | 4.63 | 5.37 | 3.96 | 4.67 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Boeing Co. | 6.40 | 4.94 | — | — | — | |
| Caterpillar Inc. | 4.36 | 4.75 | — | — | — | |
| Eaton Corp. plc | 4.75 | 6.24 | — | — | — | |
| GE Aerospace | 3.32 | 3.67 | — | — | — | |
| Honeywell International Inc. | 3.40 | 3.86 | — | — | — | |
| Lockheed Martin Corp. | 74.34 | 64.48 | — | — | — | |
| RTX Corp. | 5.93 | 5.56 | — | — | — | |
| Payables Turnover, Sector | ||||||
| Capital Goods | 5.60 | 5.54 | — | — | — | |
| Payables Turnover, Industry | ||||||
| Industrials | 7.84 | 7.52 | — | — | — | |
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
Payables turnover = Costs of goods sold ÷ Accounts payable
= 2,377,102 ÷ 674,208 = 3.53
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Generac Holdings Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021. |
Working Capital Turnover
Generac Holdings Inc., working capital 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) | ||||||
| Current assets | 1,848,464) | 1,669,733) | 1,195,829) | 1,120,769) | 818,556) | |
| Less: Current liabilities | 1,155,907) | 641,524) | 497,064) | 560,706) | 388,872) | |
| Working capital | 692,557) | 1,028,209) | 698,765) | 560,063) | 429,684) | |
| Net sales | 3,737,184) | 2,485,200) | 2,204,336) | 2,023,464) | 1,672,445) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 5.40 | 2.42 | 3.15 | 3.61 | 3.89 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Boeing Co. | 2.34 | 1.69 | — | — | — | |
| Caterpillar Inc. | 3.54 | 2.84 | — | — | — | |
| Eaton Corp. plc | 65.65 | 5.42 | — | — | — | |
| GE Aerospace | 4.94 | 2.26 | — | — | — | |
| Honeywell International Inc. | 5.86 | 3.64 | — | — | — | |
| Lockheed Martin Corp. | 11.52 | 12.01 | — | — | — | |
| RTX Corp. | 9.75 | 7.52 | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Capital Goods | 5.01 | 3.24 | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Industrials | 6.91 | 4.52 | — | — | — | |
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
Working capital turnover = Net sales ÷ Working capital
= 3,737,184 ÷ 692,557 = 5.40
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Generac Holdings Inc. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Average Inventory Processing Period
Generac Holdings Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 2.18 | 2.53 | 2.69 | 2.38 | 2.87 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 167 | 144 | 135 | 153 | 127 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Boeing Co. | 486 | 467 | — | — | — | |
| Caterpillar Inc. | 144 | 143 | — | — | — | |
| Eaton Corp. plc | 82 | 62 | — | — | — | |
| GE Aerospace | 107 | 96 | — | — | — | |
| Honeywell International Inc. | 85 | 74 | — | — | — | |
| Lockheed Martin Corp. | 19 | 23 | — | — | — | |
| RTX Corp. | 65 | 71 | — | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Capital Goods | 160 | 160 | — | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Industrials | 90 | 98 | — | — | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.18 = 167
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Generac Holdings Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
Average Receivable Collection Period
Generac Holdings Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 6.84 | 6.63 | 6.90 | 6.20 | 5.97 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 53 | 55 | 53 | 59 | 61 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Boeing Co. | 15 | 12 | — | — | — | |
| Caterpillar Inc. | 64 | 68 | — | — | — | |
| Eaton Corp. plc | 61 | 59 | — | — | — | |
| GE Aerospace | 80 | 83 | — | — | — | |
| Honeywell International Inc. | 72 | 76 | — | — | — | |
| Lockheed Martin Corp. | 11 | 11 | — | — | — | |
| RTX Corp. | 55 | 60 | — | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Capital Goods | 48 | 50 | — | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Industrials | 47 | 48 | — | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.84 = 53
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Generac Holdings Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 167 | 144 | 135 | 153 | 127 | |
| Average receivable collection period | 53 | 55 | 53 | 59 | 61 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 220 | 199 | 188 | 212 | 188 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Boeing Co. | 501 | 479 | — | — | — | |
| Caterpillar Inc. | 208 | 211 | — | — | — | |
| Eaton Corp. plc | 143 | 121 | — | — | — | |
| GE Aerospace | 187 | 179 | — | — | — | |
| Honeywell International Inc. | 157 | 150 | — | — | — | |
| Lockheed Martin Corp. | 30 | 34 | — | — | — | |
| RTX Corp. | 120 | 131 | — | — | — | |
| Operating Cycle, Sector | ||||||
| Capital Goods | 208 | 210 | — | — | — | |
| Operating Cycle, Industry | ||||||
| Industrials | 137 | 146 | — | — | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 167 + 53 = 220
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Generac Holdings Inc. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |
Average Payables Payment Period
Generac Holdings Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 3.53 | 4.63 | 5.37 | 3.96 | 4.67 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 104 | 79 | 68 | 92 | 78 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Boeing Co. | 57 | 74 | — | — | — | |
| Caterpillar Inc. | 84 | 77 | — | — | — | |
| Eaton Corp. plc | 77 | 58 | — | — | — | |
| GE Aerospace | 110 | 100 | — | — | — | |
| Honeywell International Inc. | 107 | 95 | — | — | — | |
| Lockheed Martin Corp. | 5 | 6 | — | — | — | |
| RTX Corp. | 62 | 66 | — | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Capital Goods | 65 | 66 | — | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Industrials | 47 | 49 | — | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.53 = 104
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Generac Holdings Inc. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021. |
Cash Conversion Cycle
Generac Holdings Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 167 | 144 | 135 | 153 | 127 | |
| Average receivable collection period | 53 | 55 | 53 | 59 | 61 | |
| Average payables payment period | 104 | 79 | 68 | 92 | 78 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 116 | 120 | 120 | 120 | 110 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Boeing Co. | 444 | 405 | — | — | — | |
| Caterpillar Inc. | 124 | 134 | — | — | — | |
| Eaton Corp. plc | 66 | 63 | — | — | — | |
| GE Aerospace | 77 | 79 | — | — | — | |
| Honeywell International Inc. | 50 | 55 | — | — | — | |
| Lockheed Martin Corp. | 25 | 28 | — | — | — | |
| RTX Corp. | 58 | 65 | — | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Capital Goods | 143 | 144 | — | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Industrials | 90 | 97 | — | — | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 167 + 53 – 104 = 116
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |