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Generac Holdings Financial Strength

: 7 (As of Jun. 2022)
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Generac Holdings has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Generac Holdings's Interest Coverage for the quarter that ended in Jun. 2022 was 21.19. Generac Holdings's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.33. As of today, Generac Holdings's Altman Z-Score is 5.30.


Competitive Comparison

For the Specialty Industrial Machinery subindustry, Generac Holdings's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Generac Holdings Financial Strength Distribution

For the Industrial Products industry and Industrials sector, Generac Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Generac Holdings's Financial Strength falls into.



Generac Holdings Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Generac Holdings's Interest Expense for the months ended in Jun. 2022 was $-10 Mil. Its Operating Income for the months ended in Jun. 2022 was $217 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,647 Mil.

Generac Holdings's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*216.844/-10.235
=21.19

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Generac Holdings's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(81.188 + 1646.54) / 5165.564
=0.33

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Generac Holdings has a Z-score of 5.30, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.3 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Generac Holdings  (NYSE:GNRC) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Generac Holdings has the Financial Strength Rank of 7.


Generac Holdings Financial Strength Related Terms

Thank you for viewing the detailed overview of Generac Holdings's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Generac Holdings Business Description

Generac Holdings logo
Traded in Other Exchanges
Address
S45 W29290 Highway 59, Waukesha, WI, USA, 53189
Generac Power Systems designs and manufactures power generation equipment serving residential, commercial, and industrial markets. It offers standby generators, portable generators, lighting, outdoor power equipment, and a suite of clean energy products. Sales generated in the United States account for the majority of total sales.
Executives
Nguyen Nam Tran director S45 W29290 HIGHWAY 59 WAUKESHA WI 53189
Raabe Kyle Andrew officer: EVP Consumer Power S45 W29290 HIGHWAY 59 WAUKESHA WI 53189
Kanuru Rajendra Kumar officer: EVP, GC, Corp. Secretary S45 W29290 HIGHWAY 59 WAUKESHA WI 53189
Pettit Thomas F officer: Chief Operations Officer 5695 MERRY LANE EXCELSIOR MN 55331
Avedon Marcia J director C/O INGERSOLL-RAND COMPANY 800-E BEATY STREET DAVIDSON NC 28036
Mueller Jeffrey Lee officer: President/GM - Consumer Power GENERAC POWER SYSTEMS, INC. S45 W29290 HWY. 59 WAUKESHA WI 53189
Jenkins William D Jr director C/O BARRACUDA NETWORKS INC 3175 S WINCHESTER BLVD CAMPBELL CA 95008
Zarcone Dominick P director C/O LKQ CORPORATION 500 W. MADISON STREET, SUITE 2800 CHICAGO IL 60661
Roedel Kathryn V director 6105 TRENTON LANE NORTH MINNEAPOLIS MN 55442
Wilde Erik officer: EVP - NAM Industrial S45 W29290 HWY 59 C/O GENERAC HOLDINGS, INC. WAUKESHA WI 53189
Forsythe Patrick John officer: Exec Vice President C/O GENERAC HOLDINGS INC. P.O. BOX 8 WAUKESHA WI 53189
Fmr Llc 10 percent owner, other: See Remark 1 245 SUMMER STREET BOSTON MA 02210
Castner Ralph W director ONE CABELA DRIVE SIDNEY NE 69160
Lampereur Andrew director C/O ACTUANT CORP 13000 WEST SILVER SPRING DRIVE BUTLER WI 53007
Adams Todd A. director 4701 WEST GREENFIELD AVENUE MILWAUKEE WI 53214

Generac Holdings Headlines

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