Gentex Corporation (GNTX)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,312,520K
= 0.00
The debt-to-equity ratio of Gentex Corp has remained consistently at 0.00 over the past five years, indicating that the company has not utilized any debt to finance its operations relative to its equity. This could imply that Gentex Corp has a strong financial position with a low level of financial leverage. While a low debt-to-equity ratio is generally viewed positively as it signifies lower financial risk, it is essential to consider that a lack of debt may limit the company's ability to benefit from tax advantages associated with debt financing or to leverage opportunities for growth through borrowing. Further analysis of the company's capital structure and financial strategy would be needed to fully assess the implications of this stable debt-to-equity ratio trend.
Peer comparison
Dec 31, 2023