Gentherm Inc (THRM)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,313,390	1,331,620	1,115,020	894,710	796,955
Inventory	US$ in thousands	227,356	205,892	218,248	159,477	122,401
Inventory turnover		5.78	6.47	5.11	5.61	6.51

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,313,390K ÷ $227,356K
= 5.78

The inventory turnover of Gentherm Inc has shown fluctuations over the past five years. In December 2020, the inventory turnover stood at 6.51 times, indicating that the company's inventory was sold and replenished approximately 6.51 times during that year. However, there was a slight decrease in inventory turnover to 5.61 times by December 2021, suggesting that the company took slightly longer to sell and replenish its inventory.

By December 2022, the inventory turnover further decreased to 5.11 times, potentially pointing towards slower inventory management efficiency. Nevertheless, there was a notable improvement in December 2023, with the inventory turnover increasing to 6.47 times, indicating a more efficient management of inventory during that period.

However, in December 2024, the inventory turnover decreased slightly to 5.78 times, still showing some volatility in the company's inventory management practices. Overall, the trend in inventory turnover suggests that Gentherm Inc may need to focus on optimizing its inventory management processes to ensure efficient turnover and minimize excess inventory holding costs.