Gentex Corporation (GNTX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,299,220 | 1,918,960 | 1,731,170 | 1,688,190 | 1,858,900 |
| Property, plant and equipment | US$ in thousands | 652,878 | 550,033 | 464,122 | 468,135 | 498,316 |
| Fixed asset turnover | 3.52 | 3.49 | 3.73 | 3.61 | 3.73 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,299,220K ÷ $652,878K
= 3.52
The fixed asset turnover of Gentex Corp. has shown some fluctuation over the past five years. In 2023, the fixed asset turnover ratio was 3.52, slightly higher than the previous year of 3.49. This indicates that for each dollar invested in fixed assets, the company generated $3.52 in sales revenue.
The decreasing trend in fixed asset turnover from 3.73 in 2021 to 3.49 in 2022 could suggest that the company's fixed assets were less efficiently utilized in generating sales revenue during that period. However, the ratio bounced back in 2023 to 3.52, which could indicate improved efficiency in utilizing fixed assets to generate revenue.
Overall, the average fixed asset turnover ratio over the five-year period is 3.57, indicating that Gentex Corp. has been effectively utilizing its fixed assets to generate sales revenue. It is essential for the company to continue monitoring and improving this ratio to ensure efficient utilization of its fixed assets and maximize profitability.
Peer comparison
Dec 31, 2023