Gentex Corporation (GNTX)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	226,435	260,634	237,666	215,452	214,755	222,934	269,372	279,708	262,312	269,965	353,033	455,941	423,371	400,500	343,811	278,525	296,322	260,151	260,333	221,689
Short-term investments	US$ in thousands	14,356	17,465	20,172	25,635	23,007	16,123	11,992	6,892	5,424	6,937	13,799	25,944	27,164	52,578	70,015	131,078	140,384	207,156	190,565	180,313
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
Cash ratio		0.89	1.01	0.93	0.81	0.95	0.90	0.98	1.20	1.47	1.44	1.87	2.16	2.53	1.92	1.90	1.55	2.54	2.56	2.54	2.18

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 measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. In the case of Gentex Corp., the trend of the cash ratio over the past eight quarters has been fluctuating. In Q1 2022, the cash ratio was at its highest point of 1.30, indicating a strong liquidity position. However, in Q1 2023, it decreased to 0.90, reflecting a decrease in the company's ability to cover its short-term liabilities with cash.

The cash ratio improved in Q2 and Q3 2023, reaching 1.03 and 1.13, respectively. This suggests that Gentex Corp. enhanced its liquidity position during these periods. In Q4 2023, the cash ratio slightly increased to 1.01, indicating a relatively stable liquidity position compared to the previous quarter.

Overall, while there have been fluctuations in Gentex Corp.'s cash ratio over the past eight quarters, the company has generally maintained a consistent ability to cover its short-term liabilities with cash and cash equivalents, with occasional improvements in liquidity position.