Gentherm Inc (THRM)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,448,509	1,428,068	1,388,525	1,281,481	1,193,283	1,106,858	1,024,469	1,025,636	1,044,506	1,083,664	1,096,100	964,238	903,018	845,665	833,218	941,502	976,202	1,001,836	1,016,668	1,043,099
Property, plant and equipment	US$ in thousands	245,234	236,660	239,920	242,143	244,480	228,056	149,907	152,288	155,270	155,788	155,439	151,440	152,581	150,801	149,240	152,120	160,605	162,783	169,345	168,371
Fixed asset turnover		5.91	6.03	5.79	5.29	4.88	4.85	6.83	6.73	6.73	6.96	7.05	6.37	5.92	5.61	5.58	6.19	6.08	6.15	6.00	6.20

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,448,509K ÷ $245,234K
= 5.91

Fixed asset turnover measures how efficiently a company is generating revenue from its investments in fixed assets. Gentherm Inc's fixed asset turnover fluctuated over the past eight quarters, ranging from 4.87 to 6.80. The company's fixed asset turnover was highest in Q2 2022 at 6.80 and lowest in Q1 2023 at 5.37.

Overall, Gentherm Inc has shown a generally favorable trend in fixed asset turnover over the period analyzed, indicating that the company has become more efficient in using its fixed assets to generate sales. Higher fixed asset turnover ratios suggest that Gentherm Inc is effectively utilizing its fixed assets to generate revenue.

However, it is important to note the fluctuations in the fixed asset turnover ratios and investigate the reasons behind them. Further analysis of the company's operational efficiency and capital expenditures may provide insights into the underlying factors driving these fluctuations.