Gentex Corporation (GNTX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Gentex Corporation has consistently maintained a strong solvency position, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios. These ratios have remained at 0.00 across all reporting periods from March 31, 2020, to December 31, 2024. This suggests that the company has minimal financial leverage and is not heavily reliant on debt to finance its operations.
The financial leverage ratio, which measures the extent to which the company relies on debt financing, has also remained relatively stable over the same period, ranging between 1.10 and 1.18. A financial leverage ratio around 1 indicates a balanced mix of debt and equity in the company's capital structure.
Overall, the consistent low levels of debt and strong financial leverage ratio indicate that Gentex Corporation has a strong solvency position and is well-positioned to meet its financial obligations while maintaining a healthy balance between debt and equity in its capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 183.21 | 182.00 | 186.53 | 90.33 | 16.70 | 8.43 | 5.11 | 3.84 | 5.08 | 7.44 | 15.36 | — | — | 2,674.63 | 856.53 | 665.93 | 580.07 | 843.32 | 4,719.69 |
The interest coverage ratio for Gentex Corporation has fluctuated significantly over the periods indicated.
As of March 31, 2020, Gentex had an exceptionally high interest coverage ratio of 4,719.69, indicating a strong ability to meet its interest obligations with its operating income. This high ratio suggests the company had substantial earnings relative to its interest expenses at that time.
Subsequently, the interest coverage ratio declined to 843.32 in June 30, 2020, and further decreased to 580.07 in September 30, 2020. These lower ratios may indicate that the company's operating income was less able to cover its interest expenses during these periods.
There was a slight improvement in the interest coverage ratio to 665.93 by December 31, 2020. However, the ratio then increased significantly to 856.53 by March 31, 2021, and notably surged to 2,674.63 by June 30, 2021. These higher ratios suggest a better ability to cover interest expenses with operating income during these periods.
Notably, the interest coverage ratios for September 30, 2021, and December 31, 2021, were not provided (indicated as '\u2014'), so it is unclear how the company's ability to cover interest expenses evolved during these periods.
The trend reversed in the subsequent periods, with the interest coverage ratio dropping to 15.36 by March 31, 2022, further declining to 7.44 by June 30, 2022, and continued to decrease to 3.84 by December 31, 2022. These lower ratios from 2022 indicate a potentially tighter financial position with respect to managing interest payments.
There was a slight recovery in the interest coverage ratio to 5.11 by March 31, 2023, followed by a further increase to 8.43 by June 30, 2023. The ratio significantly improved to 16.70 by September 30, 2023, suggesting a better ability to cover interest expenses with operating income during that period.
By December 31, 2023, the interest coverage ratio surged to 90.33, indicating a substantial improvement in the company's ability to cover its interest obligations with operating income. This improvement continued into the first half of 2024, with ratios of 186.53 and 182.00 by March 31, 2024, and June 30, 2024, respectively.
The last reported figure for December 31, 2024, is once again indicated as '\u2014', so the trend in the interest coverage ratio for the latter part of 2024 is unknown based on the provided data.
Overall, the analysis of Gentex Corporation's interest coverage ratios suggests varying levels of ability to meet interest obligations with operating income over the periods listed, indicating fluctuations in the company's financial health and performance in managing its debt obligations.