Gentex Corporation (GNTX)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	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
Cost of revenue (ttm)	US$ in thousands	1,668,924	1,619,696	1,580,066	1,506,931	1,437,244	1,373,630	1,282,009	1,236,355	1,225,824	1,263,278	1,289,668	1,198,318	1,195,098	1,161,258	1,173,512	1,278,288	1,278,072	1,291,790	1,271,900	1,254,951
Inventory	US$ in thousands	402,473	395,453	390,026	401,770	404,360	418,286	392,578	362,737	316,267	292,600	263,900	233,060	226,292	233,358	259,728	251,006	248,942	238,677	225,094	225,303
Inventory turnover		4.15	4.10	4.05	3.75	3.55	3.28	3.27	3.41	3.88	4.32	4.89	5.14	5.28	4.98	4.52	5.09	5.13	5.41	5.65	5.57

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,668,924K ÷ $402,473K
= 4.15

Inventory turnover is a key financial ratio that measures how efficiently a company is managing its inventory. For Gentex Corp., the inventory turnover ratio has been fluctuating over the past eight quarters. The trend indicates that Gentex has been improving its inventory management efficiency, with the ratio increasing from 2.95 in Q2 2022 to 3.82 in Q4 2023. This suggests that Gentex is selling its inventory more quickly, which could be a positive sign of improved operational efficiency and effective inventory control.

However, the ratios have varied between 2.95 and 3.82, which indicates some volatility in Gentex's inventory turnover performance. It is important for the company to monitor and analyze the factors contributing to these fluctuations to ensure a sustainable and optimized inventory management strategy. Overall, the recent increase in inventory turnover for Gentex suggests a positive trend in the company's ability to efficiently convert its inventory into sales.