Gentex Corporation (GNTX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,467,950 | 2,312,520 | 2,065,790 | 1,937,990 | 1,963,940 |
| ROE | 16.39% | 18.53% | 15.43% | 18.62% | 17.70% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $404,488K ÷ $2,467,950K
= 16.39%
Based on the provided data, Gentex Corporation's return on equity (ROE) has shown fluctuations over the past five years.
In 2020, the ROE was 17.70%, indicating that for every dollar of shareholders' equity, the company generated a return of 17.70%. This suggests that the company was efficiently utilizing its equity to generate profits.
The ROE increased to 18.62% in 2021, signaling an improvement in the company's profitability and efficiency in generating returns for its shareholders.
However, in 2022, there was a decrease in ROE to 15.43%, which may indicate a temporary dip in profitability or a decrease in the efficiency of utilizing shareholders' equity to generate returns.
The ROE rebounded in 2023 to 18.53%, surpassing the previous high in 2021. This could signify a renewed focus on profitability and effective management of the company's resources.
By the end of 2024, the ROE slightly decreased to 16.39%, suggesting a potential moderation in the company's ability to generate returns on equity compared to the previous year.
Overall, Gentex Corporation has demonstrated fluctuating but generally favorable ROE performance over the past five years, indicating varying levels of profitability and efficiency in utilizing shareholders' equity to generate returns.
Peer comparison
Dec 31, 2024