Gentex Corporation (GNTX)

Quick ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash	US$ in thousands	233,319	179,640	260,242	249,005	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
Short-term investments	US$ in thousands	22,305	20,463	15,534	16,759	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
Receivables	US$ in thousands	295,344	356,338	306,566	341,591	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
Total current liabilities	US$ in thousands	252,693	283,165	304,729	304,411	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
Quick ratio		2.18	1.97	1.91	2.00	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

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($233,319K + $22,305K + $295,344K) ÷ $252,693K
= 2.18

The quick ratio for Gentex Corporation has shown fluctuations over the periods analyzed. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has an adequate amount of liquid assets to cover its short-term liabilities.

From March 31, 2020, to December 31, 2020, Gentex Corporation's quick ratio steadily increased from 2.44 to 4.14, indicating a strong ability to meet short-term obligations. However, from March 31, 2021, to June 30, 2022, the quick ratio fluctuated between 1.94 and 3.40, reflecting some variability in the company's liquidity position.

The quick ratio decreased below 2 from March 31, 2022, to December 31, 2024, suggesting a relatively lower level of liquidity compared to the earlier periods. The ratios ranged from 1.91 to 2.29 during this time frame, showing that Gentex Corporation may have had challenges in meeting its short-term obligations with its quick assets alone.

Overall, while the quick ratio for Gentex Corporation has varied over the periods analyzed, it is important to consider the trend over time to assess the company's liquidity position accurately and its ability to handle short-term financial obligations.