Gentherm Inc (THRM)

Days of sales outstanding (DSO)

		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
Receivables turnover		5.71	5.41	5.38	4.88	4.72	4.26	4.66	4.59	5.33	5.39	5.23	4.09	3.91	4.00	6.33	5.59	5.75	5.86	5.92	5.96
DSO	days	63.90	67.42	67.86	74.82	77.27	85.67	78.37	79.47	68.50	67.70	69.80	89.24	93.32	91.26	57.70	65.25	63.44	62.24	61.62	61.25

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.71
= 63.90

Gentherm Inc's Days Sales Outstanding (DSO) has shown a fluctuating trend over the past few quarters. The DSO for Q4 2023 decreased to 72.61 days from 76.07 days in Q3 2023, indicating a faster cash collection from sales. However, comparing Q4 2023 to the same period last year (Q4 2022), there has been a notable improvement as DSO has decreased significantly from 84.77 days to 72.61 days.

Despite this recent improvement, it's essential to note that Gentherm Inc experienced higher DSO values in the preceding quarters of 2022, with the highest being 98.74 days in Q3 2022. This suggests that the company has made progress in efficient management of accounts receivable and collections over the recent quarters.

Overall, the decreasing trend in DSO indicates that Gentherm Inc has been successful in optimizing its accounts receivable processes, converting sales into cash more quickly, and potentially improving its working capital management. However, a continued focus on maintaining or further reducing DSO levels could enhance the company's liquidity position and overall financial performance.