Gentex Corporation (GNTX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.33% | 33.17% | 31.78% | 35.80% | 35.86% |
| Operating profit margin | 19.87% | 21.56% | 19.28% | 23.67% | 23.67% |
| Pretax margin | 20.41% | 21.96% | 19.27% | 24.05% | 24.39% |
| Net profit margin | 17.49% | 18.63% | 16.61% | 20.84% | 20.59% |
Gentex Corporation's profitability ratios show some fluctuations over the years.
1. Gross Profit Margin: The company's gross profit margin has remained relatively stable, ranging between 31.78% to 35.86%. This indicates that Gentex has effectively managed its production costs and pricing strategies to generate a consistent level of gross profit.
2. Operating Profit Margin: The operating profit margin has seen a slight decrease from 23.67% in 2020 to 19.87% in 2024. This could suggest that the company may be facing challenges in controlling its operating expenses or that its operational efficiency has declined slightly over the years.
3. Pre-tax Margin: The pre-tax margin has fluctuated between 19.27% to 24.39%, with a downward trend in recent years. This may imply that Gentex's profitability before taxes has been impacted by changes in revenue, expenses, or other factors influencing pre-tax income.
4. Net Profit Margin: The net profit margin also exhibits a decline from 20.59% in 2020 to 17.49% in 2024. This indicates that the company's bottom line profitability has decreased, possibly due to increased expenses or lower revenue relative to its net income.
Overall, while Gentex Corporation has maintained relatively healthy profitability margins, there are some areas of concern, particularly in operating and net profit margins where downward trends have been observed. Further analysis of the underlying factors driving these changes would be necessary to understand the company's overall financial performance and sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.65% | 18.98% | 15.90% | 19.23% | 18.18% |
| Return on assets (ROA) | 14.65% | 16.40% | 13.70% | 16.93% | 15.81% |
| Return on total capital | 18.63% | 21.44% | 17.91% | 21.14% | 20.34% |
| Return on equity (ROE) | 16.39% | 18.53% | 15.43% | 18.62% | 17.70% |
Gentex Corporation's profitability ratios show a generally positive trend over the past five years.
The Operating Return on Assets (Operating ROA) increased from 18.18% in 2020 to 19.23% in 2021, dipped slightly to 15.90% in 2022, and then increased again to 18.98% in 2023 before decreasing to 16.65% in 2024. This ratio measures the company's operating income generated per dollar of assets, indicating an improvement in the company's efficiency in generating operating profits relative to its asset base.
The Return on Assets (ROA) also saw a similar trend, starting at 15.81% in 2020, increasing to 16.93% in 2021, decreasing to 13.70% in 2022, rising to 16.40% in 2023, and then declining to 14.65% in 2024. This ratio reflects the company's overall profitability in relation to its total assets, showing fluctuations but generally maintaining a healthy level of return.
The Return on Total Capital, which evaluates how effectively a company utilizes its total capital to generate profits, increased from 20.34% in 2020 to 21.14% in 2021, dropped to 17.91% in 2022, rose to 21.44% in 2023, and then decreased to 18.63% in 2024. This ratio indicates the company's ability to generate returns for both equity and debt holders.
Finally, the Return on Equity (ROE), which measures the company's net income generated for each dollar of shareholder equity, followed a similar pattern. It started at 17.70% in 2020, increased to 18.62% in 2021, decreased to 15.43% in 2022, rose to 18.53% in 2023, and then declined to 16.39% in 2024.
Overall, Gentex Corporation's profitability ratios indicate solid performance, with fluctuations in certain years but maintaining a healthy level of returns relative to its assets, capital, and equity.