Gentex Corporation (GNTX)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,313,310	2,299,220	1,918,960	1,731,170	1,688,190
Receivables	US$ in thousands	295,344	321,810	276,494	249,795	284,925
Receivables turnover		7.83	7.14	6.94	6.93	5.93

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,313,310K ÷ $295,344K
= 7.83

Based on the data provided for Gentex Corporation's receivables turnover, there has been a consistent improvement in this ratio over the past five years. The receivables turnover increased from 5.93 in December 31, 2020, to 7.83 in December 31, 2024. This indicates that Gentex Corporation has been able to collect its accounts receivable more efficiently over time.

A higher receivables turnover ratio suggests that the company is collecting its outstanding receivables at a faster pace, which is a positive sign of effective credit management and quicker conversion of credit sales into cash. It also indicates that the company has sound credit policies in place and is efficiently managing its accounts receivable.

The steady improvement in Gentex Corporation's receivables turnover ratio is a good indicator of the company's financial health and operational efficiency. It shows that the company is effectively managing its receivables, which can help improve cash flow and overall liquidity.