Gentex Corporation (GNTX)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	459,727	495,731	370,006	409,782	399,556
Total assets	US$ in thousands	2,760,820	2,611,440	2,327,230	2,131,390	2,197,940
Operating ROA		16.65%	18.98%	15.90%	19.23%	18.18%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $459,727K ÷ $2,760,820K
= 16.65%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating profits from its assets. Gentex Corporation's Operating ROA has shown fluctuations over the past five years, as follows:

1. As of December 31, 2020, Gentex Corporation had an Operating ROA of 18.18%. This indicates that the company generated operating profits equal to 18.18% of its total assets.

2. By December 31, 2021, the Operating ROA had slightly increased to 19.23%, reflecting an improvement in the company's ability to generate operating profits from its assets.

3. However, by December 31, 2022, the Operating ROA decreased to 15.90%, suggesting that Gentex Corporation may have faced challenges in efficiently utilizing its assets to generate operating profits.

4. The Operating ROA bounced back to 18.98% by December 31, 2023, indicating a recovery in the company's operational efficiency and profitability.

5. As of December 31, 2024, Gentex Corporation's Operating ROA declined to 16.65%, which could signify a dip in the company's ability to generate operating profits relative to its asset base.

Overall, the fluctuation in Gentex Corporation's Operating ROA over the years suggests varying levels of operational efficiency and profitability. It is important for investors and stakeholders to monitor this ratio closely to assess the company's ability to effectively utilize its assets to generate profits in the long run.