Gentex Corporation (GNTX)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.13 | 1.13 | 1.10 | 1.12 | 1.12 |
Gentex Corp. has consistently maintained a debt-free capital structure over the past five years, as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being zero. This reflects a strong financial position where the company does not rely on debt to finance its operations or investments.
The financial leverage ratio, which measures the extent of a company's financial leverage, has shown some slight fluctuations over the same period. In 2023, the financial leverage ratio increased slightly to 1.13 from 1.13 in 2022. However, these changes are relatively minor and indicate a stable capital structure.
Overall, the solvency ratios demonstrate Gentex Corp.'s low financial risk and strong ability to cover its financial obligations without relying on debt. This prudent approach to managing its capital structure enhances the company's financial stability and resilience.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 3.88 | 665.93 | 4.19 |
The data provided lacks specific values for Gentex Corp.'s interest coverage ratio for the years 2019 to 2023, making a detailed analysis challenging. However, the interest coverage ratio is typically calculated as EBIT (Earnings Before Interest and Taxes) divided by interest expense, and it serves as a measure of a company's ability to meet its interest obligations with its operating income.
In general, a higher interest coverage ratio indicates that the company is more capable of covering its interest expenses from its operating profits, which is favorable for creditors and investors. A ratio below 1 implies that the company is not generating enough operating income to cover its interest expenses, signifying financial distress.
Given the absence of specific values, it is not possible to assess the trend in Gentex Corp.'s interest coverage over the years or make a deeper analysis of its financial health. Additional information on the company's financial performance and leverage would be required to provide a more insightful interpretation of its interest coverage ratio.