Gentex Corporation (GNTX)

Working capital 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
Total current assets	US$ in thousands	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	950,377	987,495	930,403	886,396
Total current liabilities	US$ in thousands	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	171,847	182,304	177,561	184,494
Working capital turnover		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	2.39	2.32	2.46	3.27

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,299,214K ÷ ($997,738K – $271,609K)
= 3.17

The working capital turnover for Gentex Corp. has been relatively stable over the past eight quarters, ranging from a low of 2.40 in Q1 2022 to a high of 3.17 in Q4 2023. This ratio indicates the company's ability to efficiently utilize its working capital to generate sales revenue.

A higher working capital turnover ratio suggests that the company is effectively managing its working capital and converting it into sales. Gentex Corp.'s improving trend in the working capital turnover from Q1 2022 to Q4 2023 reflects a positive performance in terms of efficiently using its current assets and liabilities to support its operations.

Overall, the consistent and generally increasing trend in the working capital turnover ratio indicates that Gentex Corp. has been maintaining a good balance between its current assets and liabilities to drive its sales growth over the past two years. However, it is important for the company to continue monitoring and managing its working capital effectively to sustain its operational efficiency and profitability in the future.