Gentex Corporation (GNTX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,299,220 | 1,918,960 | 1,731,170 | 1,688,190 | 1,858,900 |
| Receivables | US$ in thousands | 321,810 | 276,494 | 249,795 | 284,925 | 235,410 |
| Receivables turnover | 7.14 | 6.94 | 6.93 | 5.93 | 7.90 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,299,220K ÷ $321,810K
= 7.14
The receivables turnover ratio for Gentex Corp. has been relatively stable over the past five years, ranging from 5.93 to 7.90. This ratio measures how efficiently the company is collecting on its credit sales. A higher ratio indicates that the company is collecting its outstanding receivables more quickly.
In 2023, the receivables turnover ratio improved to 7.14 compared to 6.94 in 2022. This increase suggests that Gentex Corp. was able to collect on its accounts receivable more rapidly during the most recent year. This could be attributed to effective credit management policies or improvements in the company's collection processes.
Despite fluctuations in the ratio over the years, Gentex Corp. has generally maintained a healthy level of receivables turnover, indicating that the company has been successful in managing its credit sales and collecting payments in a timely manner. Overall, a consistent or increasing trend in receivables turnover is a positive sign of the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023