Gentex Corporation (GNTX)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	495,731	457,075	421,450	379,952	370,007	363,848	365,221	379,355	409,783	484,238	534,926	428,263	399,556	348,043	337,326	471,969	488,538	503,136	502,428	501,206
Total assets	US$ in thousands	2,611,440	2,558,320	2,487,110	2,433,350	2,327,230	2,311,320	2,284,450	2,180,380	2,131,390	2,116,430	2,166,800	2,242,450	2,197,940	2,192,480	2,101,040	2,158,100	2,168,800	2,167,300	2,142,800	2,100,370
Operating ROA		18.98%	17.87%	16.95%	15.61%	15.90%	15.74%	15.99%	17.40%	19.23%	22.88%	24.69%	19.10%	18.18%	15.87%	16.06%	21.87%	22.53%	23.21%	23.45%	23.86%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $495,731K ÷ $2,611,440K
= 18.98%

To analyze Gentex Corp.'s operating return on assets (ROA) based on the provided data:

1. Trend Analysis: Gentex Corp.'s operating ROA has fluctuated over the past eight quarters. The ROA has ranged from a low of 15.61% in Q1 2023 to a high of 18.98% in Q4 2023, indicating some variability in the company's operating efficiency and profitability.

2. Overall Performance: Despite the fluctuations, Gentex Corp. has maintained a relatively strong operating ROA across all quarters, with values consistently above 15%. This suggests that the company has been effectively generating profits from its assets and operations.

3. Comparison with Previous Quarters: Gentex Corp.'s operating ROA in Q4 2023 increased to 18.98% from 17.87% in Q3 2023. This shows an improvement in the company's ability to generate profits from its operating activities in the most recent quarter.

4. Year-on-Year Analysis: Comparing Q4 2023 to the same quarter in the previous year, there has been a slight improvement in operating ROA (18.98% in Q4 2023 vs. 15.90% in Q4 2022). This indicates that Gentex Corp. has enhanced its operational efficiency and profitability over the past year.

5. Variability: While the fluctuations in operating ROA may indicate certain operational challenges or changes in the business environment, the overall trend suggests that Gentex Corp. has been able to maintain a healthy level of profitability relative to its assets.

In conclusion, Gentex Corp. has shown a generally positive performance in terms of operating ROA, signifying efficient utilization of assets to generate profits. The recent improvement in operating ROA in Q4 2023 is a positive indicator of the company's operational efficiency and profitability.