Gentex Corporation (GNTX)

Working capital 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
Total current assets	US$ in thousands	997,738	948,652	872,976	979,331	950,377
Total current liabilities	US$ in thousands	271,609	250,553	181,656	177,737	171,847
Working capital turnover		3.17	2.75	2.50	2.11	2.39

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,299,220K ÷ ($997,738K – $271,609K)
= 3.17

The working capital turnover of Gentex Corp. has exhibited an increasing trend over the past five years. The ratio has improved from 2.39 in 2019 to 3.17 in 2023, indicating that the company is generating more revenue relative to its working capital investment.

This improvement suggests that Gentex Corp. has been able to efficiently utilize its working capital to generate sales during this period. A higher working capital turnover ratio implies that the company is managing its current assets and liabilities effectively to support its operations and sales growth.

The consistent increase in the working capital turnover ratio reflects positively on the company's operational efficiency and ability to generate revenue from its working capital resources. It may indicate improved inventory management, faster collection of receivables, or better utilization of payables to support sales activities.

Overall, the upward trend in Gentex Corp.'s working capital turnover ratio signifies a positive performance in terms of efficiently using its working capital to drive sales and generate revenue over the years.