Gentex Corporation (GNTX)

Gentex Corporation's solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets, capital, and equity over the years 2020 to 2024.

The Debt-to-assets ratio remained at 0.00, reflecting that the company has not relied on debt financing to fund its operations or investments, resulting in no debt being reported in relation to its total assets during the period.

Similarly, the Debt-to-capital ratio and Debt-to-equity ratio were also consistently at 0.00 throughout the years, underscoring Gentex Corporation's minimal reliance on debt in relation to both its capital and equity structures.

Furthermore, the Financial leverage ratio ranged between 1.10 to 1.13 during this period, suggesting that the company's financial leverage remained relatively stable, indicating a balanced capital structure without excessive reliance on debt to finance its operations.

Overall, Gentex Corporation's solvency ratios demonstrate a prudent approach to managing its debt obligations and a strong solvency position, which may indicate a lower financial risk and a capacity to withstand economic downturns or unforeseen challenges.

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Coverage ratios

The interest coverage ratio for Gentex Corporation has experienced a significant decline from 665.93 in December 31, 2020 to 3.88 in December 31, 2021 and remained relatively stable at 3.84 in December 31, 2022. This suggests that Gentex's ability to cover its interest expenses with its earnings has deteriorated substantially over the past year. The absence of data for December 31, 2023 and December 31, 2024 indicates a potential lack of financial information or additional factors that may have impacted the company's interest coverage during those periods. Overall, it is important for Gentex Corporation to closely monitor and manage its interest coverage ratio to ensure its ability to meet debt obligations and maintain financial stability.