Gentex Corporation (GNTX)

Receivables 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
Revenue (ttm)	US$ in thousands	2,313,315	2,360,809	2,328,131	2,338,678	2,299,214	2,203,730	2,121,519	2,001,469	1,918,959	1,845,152	1,751,114	1,715,696	1,731,170	1,841,193	1,916,033	1,717,654	1,687,591	1,601,563	1,604,885	1,843,970
Receivables	US$ in thousands	295,344	356,338	306,566	341,591	321,810	351,142	350,409	332,867	276,494	292,413	274,405	281,462	249,795	241,226	234,146	277,677	284,925	268,458	170,643	233,578
Receivables turnover		7.83	6.63	7.59	6.85	7.14	6.28	6.05	6.01	6.94	6.31	6.38	6.10	6.93	7.63	8.18	6.19	5.92	5.97	9.40	7.89

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,313,315K ÷ $295,344K
= 7.83

Gentex Corporation's receivables turnover ratio has shown fluctuations over the periods analyzed. The ratio ranged from a low of 5.92 in December 31, 2020, to a high of 9.40 in June 30, 2020. A higher receivables turnover ratio indicates that the company is collecting outstanding receivables more frequently. However, a significant increase in the ratio could also suggest more aggressive credit and collection policies that may risk losing potential sales.

On average, the receivables turnover ratio for Gentex Corporation during the periods analyzed stands at approximately 6.80. This suggests that, on average, the company collects its receivables every 53.68 days. Monitoring changes in the receivables turnover ratio can provide insights into the company's efficiency in managing its accounts receivable and collecting payments from customers. It is important for Gentex Corporation to strike a balance between maintaining a healthy cash flow by collecting receivables promptly and retaining valuable customers by offering appropriate credit terms.