Gentex Corporation (GNTX)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 428,403 | 318,757 | 360,797 | 347,564 | 424,684 |
| Revenue | US$ in thousands | 2,299,220 | 1,918,960 | 1,731,170 | 1,688,190 | 1,858,900 |
| Net profit margin | 18.63% | 16.61% | 20.84% | 20.59% | 22.85% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $428,403K ÷ $2,299,220K
= 18.63%
Net profit margin is a key financial ratio that indicates the percentage of each dollar of revenue that translates into net income.
In the case of Gentex Corp., the trend in net profit margin over the past five years shows some fluctuations. In 2019, the net profit margin was relatively high at 22.58%, indicating that the company was able to convert a significant portion of its revenue into profits.
However, in the subsequent years, the net profit margin experienced some variability. In 2020, it remained relatively high at 20.29%, but then dropped to 20.52% in 2021 before decreasing further to 16.36% in 2022.
Notably, in 2023, the net profit margin rebounded to 18.36%, showing a slight improvement compared to the previous year. This increase suggests that the company may have implemented strategies to enhance profitability.
Overall, while the net profit margin of Gentex Corp. has shown some fluctuations over the years, it is important for the company to focus on maintaining healthy profitability levels to ensure sustainable growth and value creation for its shareholders.
Peer comparison
Dec 31, 2023