Gentex Corporation (GNTX)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	1,690,013	1,699,630	1,678,992	1,683,964	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
Payables	US$ in thousands	168,315	182,606	206,002	191,737	184,399	171,360	168,456	166,922	151,740	171,437	186,623	140,887	98,343	100,533	101,262	107,062	84,784	90,247	60,183	100,099
Payables turnover		10.04	9.31	8.15	8.78	9.05	9.45	9.38	9.03	9.47	8.01	6.87	8.78	12.46	12.57	12.74	11.19	14.10	12.87	19.50	12.77

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,690,013K ÷ $168,315K
= 10.04

Gentex Corporation's payables turnover ratio fluctuated over the period from March 31, 2020, to December 31, 2024. The payables turnover ratio indicates how efficiently the company is managing its accounts payable.

The data shows that Gentex Corporation's payables turnover ratio ranged from a high of 19.50 on June 30, 2020, to a low of 6.87 on June 30, 2022. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, which can be beneficial in terms of managing cash flow and maintaining good relationships with suppliers.

However, the payables turnover ratio decreased significantly by March 31, 2024, to 8.15, indicating a potential slowdown in the company's ability to efficiently manage its accounts payable. It is important for Gentex Corporation to closely monitor and analyze its payables turnover ratio to ensure effective working capital management and sustainable operations.