Gentherm Inc (THRM)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,447,650	1,192,770	1,044,070	902,575	968,913
Property, plant and equipment	US$ in thousands	245,234	244,480	155,270	152,581	160,605
Fixed asset turnover		5.90	4.88	6.72	5.92	6.03

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,447,650K ÷ $245,234K
= 5.90

Fixed asset turnover measures how efficiently a company generates sales revenue from its investment in fixed assets. Gentherm Inc's fixed asset turnover has fluctuated over the past five years, ranging from 4.93 to 6.74.

In 2023, the fixed asset turnover ratio was 5.99, indicating that for every dollar invested in fixed assets, the company generated approximately $5.99 in sales. This represents an improvement from the previous year's ratio of 4.93, suggesting that Gentherm Inc was able to generate more revenue from its fixed assets in 2023.

The 2023 ratio of 5.99 is higher than the ratios in 2020 and 2019, but slightly lower than the ratio in 2021, when the company achieved a fixed asset turnover of 6.74. This indicates that in 2023, Gentherm Inc was still able to efficiently utilize its fixed assets to generate sales, although not as effectively as in 2021.

Overall, the trend in Gentherm Inc's fixed asset turnover ratio shows some fluctuations, but generally, the company has been able to effectively generate sales revenue from its fixed assets over the past five years. The increase in 2023 compared to the previous year is a positive sign of improved efficiency in asset utilization.