Gentex Corporation (GNTX)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	404,488	428,403	318,757	360,797	347,564
Total assets	US$ in thousands	2,760,820	2,611,440	2,327,230	2,131,390	2,197,940
ROA		14.65%	16.40%	13.70%	16.93%	15.81%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $404,488K ÷ $2,760,820K
= 14.65%

The return on assets (ROA) for Gentex Corporation has shown fluctuations over the past five years. As of December 31, 2020, the ROA was 15.81%, indicating that the company generated a profit of 15.81 cents for every dollar of assets it possesses.

In the following year, December 31, 2021, Gentex Corporation's ROA increased to 16.93%, reflecting improved efficiency in utilizing its assets to generate profits. However, by December 31, 2022, the ROA declined to 13.70%, suggesting a potential decrease in asset efficiency or profitability during that period.

The trend reversed in the subsequent years, with the ROA increasing to 16.40% as of December 31, 2023, indicating improved asset utilization and profitability. By December 31, 2024, the ROA decreased slightly to 14.65%, but still remained relatively solid compared to previous years.

Overall, Gentex Corporation's ROA performance demonstrates some fluctuations, with periods of both improvement and slight decline. It is essential for the company to continue monitoring and optimizing its asset management strategies to sustain or enhance profitability in the long term.