Gentex Corporation (GNTX)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 459,727 | 495,731 | 370,006 | 409,782 | 399,556 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,467,950 | 2,312,520 | 2,065,790 | 1,937,990 | 1,963,940 |
| Return on total capital | 18.63% | 21.44% | 17.91% | 21.14% | 20.34% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $459,727K ÷ ($—K + $2,467,950K)
= 18.63%
Gentex Corporation's return on total capital has shown fluctuating trends over the past five years. The ratio indicates how efficiently the company is generating profits from its total capital employed.
In 2020, the return on total capital stood at 20.34%, which increased slightly to 21.14% by the end of 2021. This indicates improved efficiency in generating returns on the capital invested.
However, in 2022, there was a decrease in the ratio to 17.91%, suggesting a potential decrease in profitability or challenges in utilizing the total capital effectively.
The ratio rebounded in 2023 to 21.44%, surpassing the levels seen in the previous years. This may indicate improved operational performance or better allocation of resources towards generating returns.
By the end of 2024, Gentex Corporation's return on total capital decreased to 18.63%. This decrease suggests a potential decline in profitability relative to the capital employed, which could be a result of various factors affecting the company's financial performance.
Overall, the fluctuating trend in Gentex Corporation's return on total capital over the past five years highlights the importance of closely monitoring the efficiency of capital utilization to sustain profitable growth in the long term.
Peer comparison
Dec 31, 2024