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.
Peer comparison
Dec 31, 2023