Gentex Corporation (GNTX)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 495,731 | 370,006 | 409,782 | 399,556 | 488,538 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,312,520 | 2,065,790 | 1,937,990 | 1,963,940 | 1,938,090 |
| Return on total capital | 21.44% | 17.91% | 21.14% | 20.34% | 25.21% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $495,731K ÷ ($—K + $2,312,520K)
= 21.44%
Gentex Corp.'s return on total capital has shown fluctuation over the past five years. The company's return on total capital was 21.44% at the end of 2023, representing an improvement from the previous year's 17.91%. This indicates that Gentex Corp. was able to generate a return of 21.44% on the total capital employed in its operations during the year.
Comparing with historical data, the return on total capital was 21.14% in 2021 and 20.34% in 2020, showing consistency in generating returns above 20% in these years. However, there was a notable decrease from 25.21% in 2019 to 20.34% in 2020 before gradually increasing again.
Overall, Gentex Corp.'s return on total capital has demonstrated positive performance, with fluctuations reflecting changes in the efficiency of capital utilization and profitability over the past five years.
Peer comparison
Dec 31, 2023