Gentex Corporation (GNTX)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,668,820	1,437,340	1,225,820	1,195,100	1,278,070
Payables	US$ in thousands	184,399	151,740	98,343	84,784	97,554
Payables turnover		9.05	9.47	12.46	14.10	13.10

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,668,820K ÷ $184,399K
= 9.05

Gentex Corp.'s payables turnover has shown a declining trend over the past five years, dropping from 12.00 in 2019 to 8.33 in 2023. This indicates that the company is taking longer to pay off its accounts payable, which could potentially strain its relationships with suppliers. The decreasing trend in payables turnover may suggest that Gentex is managing its payables less efficiently than in previous years. Further investigation into the underlying reasons for this trend is warranted to assess the impact on the company's liquidity and financial health.