Gentex Corporation (GNTX)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,611,440	2,327,230	2,131,390	2,197,940	2,168,800
Total stockholders’ equity	US$ in thousands	2,312,520	2,065,790	1,937,990	1,963,940	1,938,090
Financial leverage ratio		1.13	1.13	1.10	1.12	1.12

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,611,440K ÷ $2,312,520K
= 1.13

The financial leverage ratio of Gentex Corp. has remained relatively stable over the past five years, ranging between 1.10 and 1.13. This indicates that the company has been utilizing a conservative amount of debt in relation to its equity to finance its operations and investments.

A financial leverage ratio above 1 suggests that the company relies more on debt funding compared to equity, although the slight fluctuations over the years do not show any significant trend towards increasing or decreasing leverage.

Overall, a consistent ratio around 1.12 suggests that Gentex Corp. has maintained a balanced capital structure with a moderate level of financial leverage, which could imply a lower overall financial risk compared to companies with higher leverage ratios. It would be important to consider other financial metrics and industry standards to gain a more thorough understanding of the company's leverage position within its sector.