Gentherm Inc (THRM)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,452,030 | 1,447,650 | 1,192,770 | 1,044,070 | 902,575 |
| Property, plant and equipment | US$ in thousands | 252,970 | 245,234 | 244,480 | 155,270 | 152,581 |
| Fixed asset turnover | 5.74 | 5.90 | 4.88 | 6.72 | 5.92 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,452,030K ÷ $252,970K
= 5.74
To analyze Gentherm Inc's fixed asset turnover, we consider the ratio of net sales to average fixed assets over a period. The fixed asset turnover for Gentherm Inc has shown fluctuations over the past five years.
In December 2020, the fixed asset turnover was 5.92, indicating that the company generated $5.92 in sales for every $1 of fixed assets invested. This ratio increased to 6.72 by December 2021, suggesting improved efficiency in the utilization of fixed assets to generate revenue.
However, by December 2022, the fixed asset turnover decreased to 4.88, signaling a decline in the company's ability to generate sales from its fixed assets. The ratio then rebounded to 5.90 in December 2023 before slightly dropping to 5.74 by December 2024.
Overall, while the fixed asset turnover ratios have varied yearly, it is essential for Gentherm Inc to closely monitor and manage the efficiency of its fixed asset utilization to ensure optimal revenue generation and operational performance.
Peer comparison
Dec 31, 2024