Gentex Corporation (GNTX)

Liquidity ratios

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
Current ratio 3.67 3.85 3.71 3.38 3.79 3.73 3.47 3.99 4.81 4.55 4.71 4.53 5.51 4.12 3.95 3.45 5.53 5.42 5.24 4.80
Quick ratio 2.07 2.29 2.20 1.93 2.05 2.00 1.94 2.37 2.85 2.69 3.06 3.40 4.14 3.05 2.69 2.44 3.91 3.95 3.81 3.50
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

Gentex Corp.'s liquidity ratios reflect the company's ability to meet its short-term obligations. The current ratio has been relatively stable over the quarters, ranging from 3.38 to 3.85, indicating that the company has ample current assets to cover its current liabilities. A current ratio above 2 is generally considered healthy.

The quick ratio, which excludes inventory from current assets, shows a similar trend with values between 2.02 and 2.48. This ratio provides a more conservative measure of liquidity than the current ratio and suggests that Gentex Corp. can cover its short-term obligations even if inventory cannot be quickly converted into cash.

The cash ratio, which measures the company's ability to cover current liabilities with its cash and cash equivalents, has been consistently above 1, ranging from 0.90 to 1.30. This indicates that Gentex Corp. holds sufficient liquid assets to meet its short-term obligations without relying on inventory or receivables.

Overall, Gentex Corp. demonstrates strong liquidity position with current, quick, and cash ratios consistently above industry benchmarks, implying that the company is well-equipped to manage its short-term financial obligations effectively.

Additional liquidity measure

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 conversion cycle days 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 89.46 89.96 83.41 78.22

The cash conversion cycle is a key metric that indicates how efficiently a company is managing its working capital. It represents the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.

For Gentex Corp., the cash conversion cycle has shown fluctuations over the past eight quarters. In the most recent quarter, Q4 2023, the company's cash conversion cycle was 102.89 days, which was an improvement from the previous quarter at 113.03 days. This suggests that Gentex Corp. was able to generate cash from its operating activities more quickly in Q4 2023 compared to the prior quarter.

Looking at the trend over the past year, there was a gradual decrease in the cash conversion cycle from Q1 2022 to Q4 2022, indicating improved efficiency in managing working capital. However, there was a slight increase in the cycle in the first two quarters of 2023, before declining again in the last two quarters.

Overall, Gentex Corp.'s cash conversion cycle has shown some variability, but the recent improvement in Q4 2023 is a positive sign of the company's ability to efficiently manage its working capital and generate cash from its operations. Monitoring this metric closely can provide insights into the company's liquidity and operational efficiency.