Gentex Corporation (GNTX)

Return on assets (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
Net income (ttm)	US$ in thousands	428,402	397,626	365,557	328,806	318,757	316,768	320,773	334,875	360,797	419,957	460,389	371,509	347,564	303,772	298,577	409,910	424,684	431,412	430,850	430,915
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
ROA		16.40%	15.54%	14.70%	13.51%	13.70%	13.71%	14.04%	15.36%	16.93%	19.84%	21.25%	16.57%	15.81%	13.86%	14.21%	18.99%	19.58%	19.91%	20.11%	20.52%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $428,402K ÷ $2,611,440K
= 16.40%

To analyze Gentex Corp.'s return on assets (ROA) over the past eight quarters, we observe a generally positive trend in the company's efficiency in generating profits relative to its total assets. The ROA has shown a consistent increase from the first quarter of 2022 (13.12%) to the fourth quarter of 2023 (16.16%).

This improvement indicates that Gentex Corp. has been effectively utilizing its assets to generate earnings. It is noteworthy that the ROA reached its peak in Q4 2023, signifying the company's increased efficiency in generating profits per unit of assets.

Overall, the trend in Gentex Corp.'s ROA suggests that the company has been successful in optimizing its asset utilization to enhance profitability. However, it would be beneficial to continue monitoring this ratio to ensure sustained efficiency in utilizing assets effectively for future growth and profitability.