Gentex Corporation (GNTX)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	94.27	96.49	100.76	94.62	88.02	89.12	90.10	97.31	102.69	111.15	111.77	107.09	94.17	84.54	74.69	70.99	69.11	73.35	80.78	71.67
Days of sales outstanding (DSO)	days	46.60	55.09	48.06	53.31	51.09	58.16	60.29	60.70	52.59	57.84	57.20	59.88	52.67	47.82	44.60	59.01	61.62	61.18	38.81	46.24
Number of days of payables	days	36.35	39.22	44.78	41.56	40.33	38.62	38.91	40.43	38.54	45.55	53.13	41.59	29.28	29.05	28.66	32.61	25.89	28.37	18.72	28.58
Cash conversion cycle	days	104.52	112.37	104.04	106.37	98.78	108.66	111.47	117.59	116.75	123.44	115.83	125.37	117.56	103.31	90.63	97.38	104.84	106.16	100.87	89.32

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.27 + 46.60 – 36.35
= 104.52

The cash conversion cycle of Gentex Corporation fluctuated over the analyzed period, ranging from a low of 89.32 days in March 2020 to a peak of 125.37 days in March 2022. The company's cash conversion cycle represents the time it takes for Gentex to convert its investments in inventory and other resources into cash flows from sales.

A lower cash conversion cycle indicates that Gentex is able to quickly convert its investments into cash, reflecting efficient operations and effective working capital management. On the other hand, a longer cash conversion cycle suggests that Gentex may be facing challenges in managing its working capital, potentially leading to increased liquidity risk and financial strain.

Overall, analyzing Gentex Corporation's cash conversion cycle can provide valuable insights into the company's operational efficiency, working capital management, and potential liquidity risks that may impact its financial performance.