Gentex Corporation (GNTX)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	762,630	609,814	619,708	605,444	688,308
Revenue	US$ in thousands	2,299,220	1,918,960	1,731,170	1,688,190	1,858,900
Gross profit margin		33.17%	31.78%	35.80%	35.86%	37.03%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $762,630K ÷ $2,299,220K
= 33.17%

The gross profit margin of Gentex Corp. has shown some fluctuation over the last five years. In 2023, the gross profit margin increased to 33.17%, up from 31.78% in 2022. This rise in gross profit margin indicates that the company was able to generate more revenue from sales after accounting for the cost of goods sold, which is a positive sign for profitability.

Comparing the gross profit margin of 2023 to the figures from 2021, 2020, and 2019, it is evident that there has been a slight downward trend. In 2021, the gross profit margin was at 35.80%, dropping to 35.86% in 2020, and further decreasing to 37.03% in 2019. This trend suggests that the company may be facing challenges in maintaining its gross profit margins over the years, which could be attributed to factors such as changes in input costs, pricing strategies, or competitive pressures.

Overall, while the uptick in the gross profit margin in 2023 is a positive development, Gentex Corp. may need to focus on strategies to sustain or improve its profitability levels in the face of ongoing market dynamics and operational considerations.