Gentex Corporation (GNTX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.17% | 31.78% | 35.80% | 35.86% | 37.03% |
| Operating profit margin | 21.56% | 19.28% | 23.67% | 23.67% | 26.28% |
| Pretax margin | 21.96% | 19.27% | 24.05% | 24.39% | 26.92% |
| Net profit margin | 18.63% | 16.61% | 20.84% | 20.59% | 22.85% |
Gentex Corp.'s profitability ratios have shown fluctuating trends over the past five years.
1. Gross Profit Margin:
- The company's gross profit margin has ranged from 31.78% to 37.03% in the last five years.
- It increased in 2021 to 35.80% but decreased slightly to 33.17% in 2023.
- The gross profit margin indicates the company's ability to generate revenue after accounting for the cost of goods sold.
2. Operating Profit Margin:
- Operating profit margin has varied from 19.28% to 26.28% during the same period.
- There was an increase in 2021 to 23.67%, but it further increased to 21.56% in 2023.
- This margin reflects the company's ability to control operating expenses while generating profit from its core business operations.
3. Pretax Margin:
- Pretax margin has fluctuated between 19.27% and 26.92% in the last five years.
- The margin peaked in 2021 at 24.05% but decreased slightly to 21.96% in 2023.
- The pretax margin measures the company's profitability before accounting for taxes.
4. Net Profit Margin:
- Net profit margin has ranged from 16.36% to 22.58% over the same period.
- The margin reached a peak in 2019 at 22.58% but declined to 18.36% in 2023.
- The net profit margin represents the percentage of revenue that translates into bottom-line profit after all expenses are accounted for.
In conclusion, Gentex Corp.'s profitability ratios show some variability over the years, highlighting the importance of monitoring cost management and operational efficiencies to sustain and improve overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.98% | 15.90% | 19.23% | 18.18% | 22.53% |
| Return on assets (ROA) | 16.40% | 13.70% | 16.93% | 15.81% | 19.58% |
| Return on total capital | 21.44% | 17.91% | 21.14% | 20.34% | 25.21% |
| Return on equity (ROE) | 18.53% | 15.43% | 18.62% | 17.70% | 21.91% |
Gentex Corp.'s profitability ratios demonstrate a generally positive trend over the last five years.
- Operating return on assets (Operating ROA) has shown improvement from 2019 to 2021, peaking at 22.53% in 2019 before slightly decreasing to 18.98% in 2023. This ratio indicates the company's ability to generate operating income from its assets, with the latest figure being relatively strong.
- Return on assets (ROA) also exhibits a similar pattern of improvement from 2019 to 2021, with a peak of 19.35% in 2019 and a recent value of 16.16% in 2023. This ratio reflects the company's overall efficiency in utilizing its assets to generate profits.
- Return on total capital has followed a similar trend of improvement, fluctuating between 17.91% and 25.21% over the last five years. The latest figure of 21.44% in 2023 suggests that Gentex Corp. is effectively utilizing its total capital to generate returns for its stakeholders.
- Return on equity (ROE) has shown a consistent improvement from 2019 to 2021, with a recent value of 18.25% in 2023. This ratio indicates the company's ability to generate profits from shareholders' equity investments.
Overall, Gentex Corp.'s profitability ratios indicate a strong performance in terms of generating returns from its assets, total capital, and equity. The company's ability to maintain and improve these ratios over the years reflects its efficiency and profitability in utilizing its resources.