Gentex Corporation (GNTX)

Payables 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
Payables	US$ in thousands	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	97,554	95,310	90,041	90,117
Payables turnover		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	13.10	13.55	14.13	13.93

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,668,924K ÷ $184,399K
= 9.05

The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to its average accounts payable balance. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.

Analyzing the payables turnover ratio of Gentex Corp. over the past quarters reveals a consistent trend of improvement. In Q4 2023, the payables turnover ratio was 8.33, slightly lower than Q3 2023 but still above 8, indicating that the company is efficiently managing its payables. This improvement is noteworthy compared to the ratios in earlier quarters, such as Q2 and Q3 2022, where the ratios were below 7, suggesting a slower turnover of payables.

Overall, the increasing trend in payables turnover ratios from Q1 2022 to Q4 2023 demonstrates that Gentex Corp. has been effectively managing its accounts payable, potentially negotiating better payment terms with suppliers or optimizing its working capital management. Further analysis and comparison with industry benchmarks could provide additional insights into the company's efficiency in managing its payables.