Gentex Corporation (GNTX)

Quick 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	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
Receivables	US$ in thousands	321,810	351,142	350,409	332,867	276,494	292,413	274,405	281,462	249,795	241,226	234,146	277,677	284,925	268,458	170,643	233,578	235,410	253,109	226,426	244,266
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
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

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, also known as the acid-test ratio, is a liquidity ratio that measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.

Looking at Gentex Corp.'s quick ratio over the past eight quarters, we observe some fluctuations. In Q4 2023, the quick ratio stood at 2.19, a slight decrease from the previous quarter's 2.41. Despite this decrease, the ratio remains comfortably above 1, indicating that Gentex Corp. is able to meet its short-term obligations using its quick assets.

Over the past two years, the quick ratio has generally been strong and consistent, ranging from 2.02 to 2.48. This stability suggests that Gentex Corp. has maintained a healthy level of liquid assets relative to its current liabilities, which is a positive indicator of the company's financial health and ability to weather short-term financial challenges.

Overall, based on the historical trend of Gentex Corp.'s quick ratio, the company appears to have a solid liquidity position and should be well-equipped to cover its short-term obligations when they come due.