Gentex Corporation (GNTX)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	226,435	214,755	262,312	423,371	296,322
Short-term investments	US$ in thousands	14,356	23,007	5,424	27,164	140,384
Total current liabilities	US$ in thousands	271,609	250,553	181,656	177,737	171,847
Cash ratio		0.89	0.95	1.47	2.53	2.54

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($226,435K + $14,356K) ÷ $271,609K
= 0.89

The cash ratio of Gentex Corp. has been declining steadily over the past five years, from 2.71 in 2019 to 1.01 in 2023. This indicates a decreasing ability of the company to cover its short-term liabilities using its cash and cash equivalents. The decreasing trend may raise concerns about the company's liquidity position and its ability to meet its short-term obligations. Further analysis of the company's cash management and working capital practices may be warranted to understand the reasons behind this declining trend in the cash ratio.