Gentex Corporation (GNTX)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,312,520	2,268,450	2,195,950	2,123,260	2,065,790	2,034,050	1,986,570	1,928,970	1,937,990	1,887,630	1,916,320	1,960,980	1,963,940	1,895,610	1,822,610	1,834,610	1,938,090	1,921,330	1,904,330	1,857,080
ROE		18.53%	17.53%	16.65%	15.49%	15.43%	15.57%	16.15%	17.36%	18.62%	22.25%	24.02%	18.95%	17.70%	16.03%	16.38%	22.34%	21.91%	22.45%	22.62%	23.20%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $428,402K ÷ $2,312,520K
= 18.53%

To analyze Gentex Corp.'s return on equity (ROE) based on the provided data, we observe a fluctuating trend in the ROE over the past eight quarters.

In Q4 2023, the ROE was at 18.25%, showing a slight increase from the previous quarter at 17.27% in Q3 2023. This indicates that the company's ability to generate profit from shareholders' equity improved during this period.

Comparing Q4 2023 to the same quarter in the previous year (Q4 2022 at 15.19%), there has been noticeable growth in ROE. This suggests that Gentex Corp. has been more efficient in utilizing its equity to generate earnings for shareholders over the year.

However, it is essential to note that the ROE has experienced fluctuations over the quarters, ranging from a low of 15.19% in Q4 2022 to a high of 18.25% in Q4 2023. This volatility in the ROE indicates potential variability in the company's profitability and financial performance.

Overall, while Gentex Corp. has shown improvements in ROE compared to the previous year, the fluctuations in the ratio suggest the need for further analysis to understand the factors influencing the company's profitability and efficiency in utilizing shareholders' equity.