Gentex Corporation (GNTX)

Receivables 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
Revenue (ttm)	US$ in thousands	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	1,858,775	1,868,348	1,850,840	2,292,092
Receivables	US$ in thousands	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	235,410	253,109	226,426	244,266
Receivables turnover		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	7.90	7.38	8.17	9.38

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,299,214K ÷ $321,810K
= 7.14

Gentex Corp.'s receivables turnover has exhibited some fluctuation over the past eight quarters. The turnover ratio, which measures how efficiently the company is collecting its accounts receivable during a given period, ranged from a high of 7.14 in Q4 2023 to a low of 6.01 in Q1 2023.

Overall, the company's ability to convert its accounts receivable into cash improved in the most recent quarter compared to the previous quarters. This indicates that Gentex Corp. was more efficient in collecting payments from its customers during Q4 2023.

The average receivables turnover for the past eight quarters was approximately 6.44, suggesting that, on average, Gentex Corp. collects its outstanding receivables approximately 6.44 times per year.

Analyzing receivables turnover ratios can provide insights into a company's liquidity and credit management. A higher receivables turnover ratio indicates that the company is collecting its outstanding receivables quickly, which is generally a positive sign of efficiency. Conversely, a declining or low turnover ratio could signal potential issues with collecting receivables promptly or extending excessive credit to customers.

It is important to continue monitoring Gentex Corp.'s receivables turnover ratio to assess any long-term trends or abnormalities that may impact the company's financial health and performance.