Liabilities Breakdown
| Total Current Liabilities | 327.97 Million | |
| Liabilities And Stockholders Equity | 3.15 Billion | |
| Non Current Liabilities Total | 50.79 Million | |
| Non Current Liabilities Other | 16.42 Million |
Is Gentex (USA Stocks:GNTX) having difficulty to pay out its debt?
 | By Gabriel Shpitalnik | Macroaxis Story |
Considering the potential for February volatility, Gentex (NASDAQ: GNTX) presents intriguing opportunities for investors looking to leverage their positions. With an Accumulation Distribution of 39.5K and a robust Operating Income of 495.7M, traders might find strategic entry points to capitalize on price fluctuations, balancing risk with the company's solid financial footing.
Key Takeaways
Gentex has $3.57 million in liabilities and a Debt to Equity (D/E) ratio of 0.0, indicating it might not be leveraging borrowing opportunities. With a current ratio of 3.4, the company appears well-positioned to meet its short-term financial obligations. It's important to consider Gentex's debt in conjunction with its cash and equity. The company has a Profit Margin of 0.18%, meaning even a slight drop in revenue could lead to losses, which is significantly below average. Its Operating Margin stands at 0.21%, indicating that for every $100 in sales, it earns just $0.21 in operating income.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Rifka Kats
When the going gets tough, the tough get going, and for investors eyeing Gentex, this could be the perfect time to buckle up for potential market swings in February. As a key player in the auto parts industry, Gentex has shown resilience with a robust total stockholder equity of $2.3 billion, providing a solid foundation amid market fluctuations. While the company navigates through the consumer cyclical sector's ups and downs, investors might find opportunities to capitalize on its strategic positioning and financial health. Gentex is set to release its earnings report tomorrow, and the stock has been facing some selling pressure recently. Currently, the company's inventory turnover remains steady compared to last year. Looking ahead, net income per share is projected to increase to $1.76 by 2025, while days sales outstanding is expected to decrease to 51.19. For those interested in the automotive components sector, Gentex presents a distinctive option worth considering.Gentex financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Gentex, including all of Gentex's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Gentex assets, the company is considered highly leveraged. Understanding the composition and structure of overall Gentex debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Gentex Total Debt
Gentex liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Gentex has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Gentex balance sheet include debt obligations and money owed to different Gentex vendors, workers, and loan providers. Below is the chart of Gentex main long-term debt accounts currently reported on its balance sheet. You can use Gentex financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Gentex's Liquidity
Gentex financial leverage refers to using borrowed capital as a funding source to finance Gentex ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Gentex financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Gentex's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Gentex's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Gentex's total debt and its cash.
Detailed Perspective On Gentex
The entity reported the previous year's revenue of 2.3 B. Net Income was 428.4 M with profit before overhead, payroll, taxes, and interest of 798.23 M.
In times of market turbulence, opportunities often arise for the vigilant investor.As Gentex (NASDAQ: GNTX) investors brace for potential February volatility, the company's solid financial position offers a silver lining. With a robust current ratio of 3.47X, Gentex demonstrates a strong ability to cover its short-term liabilities, which is a comforting sign for investors navigating uncertain waters. Additionally, the company's debt-to-equity ratio stands at 0%, indicating that Gentex is operating without relying on borrowed funds, further enhancing its financial stability. Despite a modest five-year return of 1.71%, these financial metrics suggest that Gentex is well-positioned to weather market fluctuations, presenting potential opportunities for investors willing to look beyond short-term volatility..
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Gentex. Please refer to our Terms of Use for any information regarding our disclosure principles.