Gentex Corporation (GNTX)

Working capital 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
Total current assets US$ in thousands 1,037,330 1,045,680 1,083,880 1,072,600 997,738 1,055,450 1,025,310 1,005,040 948,652 989,323 991,887 955,531 872,976 874,707 924,576 1,010,520 979,331 975,319 859,327 910,727
Total current liabilities US$ in thousands 252,693 283,165 304,729 304,411 271,609 274,406 276,062 297,031 250,553 265,165 286,172 239,223 181,656 192,442 196,397 223,230 177,737 236,489 217,631 263,958
Working capital turnover 2.95 3.10 2.99 3.04 3.17 2.82 2.83 2.83 2.75 2.55 2.48 2.40 2.50 2.70 2.63 2.18 2.11 2.17 2.50 2.85

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,313,315K ÷ ($1,037,330K – $252,693K)
= 2.95

The working capital turnover of Gentex Corporation has exhibited fluctuations over the period of March 31, 2020, to December 31, 2024. The working capital turnover ratio is a measure of how efficiently a company utilizes its working capital to generate sales revenue.

From March 2020 to December 2020, the working capital turnover ratio declined steadily from 2.85 to 2.11, indicating a decrease in efficiency in utilizing working capital to support sales. Subsequently, there was a slight improvement in the ratio by March 2021.

During the second half of 2021, the ratio started to increase, reaching a peak of 3.17 by December 2023, signifying a more efficient utilization of working capital to support sales growth. This could be indicative of improved inventory management, collection of receivables, or better payment terms with suppliers.

In the last quarter of 2024, there was a slight decline in the working capital turnover ratio to 2.95. Overall, Gentex Corporation has shown fluctuations in its working capital turnover ratio, reflecting changes in its efficiency in managing working capital to generate sales revenue over the analyzed period.