Gentex Corporation (GNTX)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	321,810	276,494	249,795	284,925	235,410
Total current liabilities	US$ in thousands	271,609	250,553	181,656	177,737	171,847
Quick ratio		2.07	2.05	2.85	4.14	3.91

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($226,435K + $14,356K + $321,810K) ÷ $271,609K
= 2.07

The quick ratio of Gentex Corp. has shown a decreasing trend over the last five years. The ratio was 4.08 in 2019, indicating a stronger ability to meet short-term liabilities with liquid assets. However, the quick ratio has steadily declined since then, reaching 2.19 in 2023.

A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities. Gentex Corp. has generally maintained a healthy quick ratio above 2 in recent years, indicating a strong liquidity position. However, the decreasing trend of the quick ratio may suggest a potential decrease in the company's ability to meet its short-term obligations with its current liquid assets.

It is important for investors and stakeholders to monitor Gentex Corp.'s quick ratio closely to assess the company's liquidity position and its ability to weather any potential short-term financial challenges.