Gentherm Inc (THRM)

Days of inventory on hand (DOH)

		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
Inventory turnover		5.78	5.57	6.09	6.04	6.47	6.57	6.35	5.52	5.11	4.28	4.87	5.09	5.61	5.95	6.65	6.32	6.51	6.65	6.76	7.19
DOH	days	63.16	65.50	59.97	60.40	56.43	55.56	57.50	66.07	71.44	85.24	74.98	71.66	65.06	61.33	54.87	57.76	56.06	54.92	53.99	50.77

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.78
= 63.16

The days of inventory on hand (DOH) for Gentherm Inc have shown some fluctuations over the period from March 31, 2020, to December 31, 2024. Initially, the DOH was around 50 days and gradually increased to a peak of 85.24 days on September 30, 2022. This significant increase in DOH may suggest that the company was carrying excess inventory relative to its sales during that period.

Subsequently, there was a decrease in DOH to around 56.43 days by December 31, 2023, indicating a more efficient management of inventory levels. However, there was a slight increase in DOH to 60.40 days by March 31, 2024, before decreasing again to 59.97 days by June 30, 2024.

Overall, fluctuations in the DOH metric can be influenced by various factors such as inventory management practices, demand variability, production efficiency, and supply chain disruptions. It is important for Gentherm Inc to maintain an optimal level of inventory to support its operations and maximize profitability. Monitoring and managing the DOH metric effectively can help the company improve its inventory turnover, reduce carrying costs, and enhance overall financial performance.