Gentherm Inc (THRM)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		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	7.44	7.62	8.35	8.52
DOH	days	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	49.03	47.92	43.70	42.83

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.47
= 56.43

The days of inventory on hand (DOH) for Gentherm Inc have shown a fluctuating pattern over the past eight quarters. In Q1 2022, the DOH was 86.29 days, which decreased to 85.56 days in Q4 2022, before increasing significantly to 101.83 days in Q3 2022. Subsequently, there was a decreasing trend in DOH in Q2 2023 and Q3 2023, with values of 69.44 days and 67.07 days, respectively. However, in Q4 2023, the DOH increased slightly to 67.25 days.

Overall, the trend in DOH indicates some variability in how long Gentherm holds inventory before selling it. A lower DOH implies a faster turnover of inventory, which can be beneficial for liquidity and reducing the risk of obsolete inventory. On the other hand, a higher DOH could indicate slower inventory turnover and potential liquidity challenges or excess inventory.

It is important for Gentherm to closely monitor and manage its inventory levels to optimize working capital management and operational efficiency. Continuously evaluating the reasons behind fluctuations in DOH can help the company make informed decisions to improve inventory control and overall financial performance.