Gentex Corporation (GNTX)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total assets	US$ in thousands	2,760,820	2,735,300	2,738,280	2,713,220	2,611,440	2,558,320	2,487,110	2,433,350	2,327,230	2,311,320	2,284,450	2,180,380	2,131,390	2,116,430	2,166,800	2,242,450	2,197,940	2,192,480	2,101,040	2,158,100
Total stockholders’ equity	US$ in thousands	2,467,950	2,417,630	2,400,300	2,376,360	2,312,520	2,268,450	2,195,950	2,123,260	2,065,790	2,034,050	1,986,570	1,928,970	1,937,990	1,887,630	1,916,320	1,960,980	1,963,940	1,895,610	1,822,610	1,834,610
Financial leverage ratio		1.12	1.13	1.14	1.14	1.13	1.13	1.13	1.15	1.13	1.14	1.15	1.13	1.10	1.12	1.13	1.14	1.12	1.16	1.15	1.18

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,760,820K ÷ $2,467,950K
= 1.12

The financial leverage ratio of Gentex Corporation, which measures the company's use of debt to finance its operations and investments, has been relatively stable over the past few years. The ratio has fluctuated between 1.10 and 1.18, indicating that the company has maintained a conservative level of debt compared to its equity.

Generally, a financial leverage ratio below 1 suggests that a company relies more on equity financing than debt financing, which can be considered a lower risk strategy. In Gentex Corporation's case, the ratio has mostly remained above 1, indicating a moderate level of debt in its capital structure.

It is important to note that while analyzing the financial leverage ratio in isolation can provide insights into a company's capital structure, it is also crucial to consider other key financial ratios and factors to gain a comprehensive understanding of its overall financial health and risk profile.