Gentex Corporation (GNTX)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,690,010	1,668,820	1,437,340	1,225,820	1,195,100
Payables	US$ in thousands	168,315	184,399	151,740	98,343	84,784
Payables turnover		10.04	9.05	9.47	12.46	14.10

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,690,010K ÷ $168,315K
= 10.04

The payables turnover ratio for Gentex Corporation has shown a gradual decline over the years, decreasing from 14.10 in December 31, 2020, to 10.04 in December 31, 2024. This suggests that the company is taking longer to pay its suppliers compared to previous years. A lower payables turnover ratio may indicate potential liquidity issues or a change in the company's payment policies. It is important for Gentex Corporation to monitor and manage its payables effectively to maintain good relationships with suppliers and ensure continued access to crucial inputs for its operations. Furthermore, a thorough analysis of the factors contributing to the decreasing payables turnover ratio is warranted to address any underlying issues and improve the company's financial health.