Gentex Corporation (GNTX)

Working capital 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
Total current assets US$ in thousands 1,037,330 997,738 948,652 872,976 979,331
Total current liabilities US$ in thousands 252,693 271,609 250,553 181,656 177,737
Working capital turnover 2.95 3.17 2.75 2.50 2.11

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,313,310K ÷ ($1,037,330K – $252,693K)
= 2.95

Working capital turnover is a financial metric that indicates how efficiently a company is utilizing its working capital to generate sales. The trend analysis of Gentex Corporation's working capital turnover from 2020 to 2024 shows a progressive increase, starting from 2.11 in 2020 and reaching 2.95 in 2024.

This improvement suggests that Gentex has been effectively managing its working capital to support its sales growth over the years. A higher working capital turnover ratio indicates that the company is efficiently converting its working capital into sales revenue.

The steady growth in working capital turnover reflects positively on Gentex Corporation's operational efficiency and liquidity management. It implies that the company is efficiently utilizing its current assets to support its ongoing operations and generate revenue.

Overall, the increasing trend in Gentex's working capital turnover ratio is a positive indicator of the company's ability to manage its working capital effectively and generate sales efficiently over the years.