Gentex Corporation (GNTX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 997,738 | 948,652 | 872,976 | 979,331 | 950,377 |
| Total current liabilities | US$ in thousands | 271,609 | 250,553 | 181,656 | 177,737 | 171,847 |
| Current ratio | 3.67 | 3.79 | 4.81 | 5.51 | 5.53 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $997,738K ÷ $271,609K
= 3.67
The current ratio measures a company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates a stronger financial position, as the company has more current assets relative to its current liabilities.
In the case of Gentex Corp., we observe a declining trend in the current ratio over the past five years. The current ratio decreased from 5.53 in 2019 to 3.67 in 2023. This trend suggests that Gentex Corp. may be facing challenges in maintaining sufficient current assets to cover its short-term liabilities.
While a current ratio of 3.67 in 2023 still indicates that Gentex Corp. has more than enough current assets to meet its short-term obligations, the decreasing trend raises concerns about the company's liquidity position. It is important for investors and stakeholders to monitor this ratio closely to ensure that Gentex Corp. is able to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023