Gentherm Inc (THRM)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,331,620 | 1,115,020 | 894,710 | 796,955 | 881,987 |
| Inventory | US$ in thousands | 205,892 | 218,248 | 159,477 | 122,401 | 118,479 |
| Inventory turnover | 6.47 | 5.11 | 5.61 | 6.51 | 7.44 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,331,620K ÷ $205,892K
= 6.47
Gentherm Inc's inventory turnover has fluctuated over the past five years, with the highest turnover recorded in 2019 at 5.77 and the lowest in 2022 at 4.27. The inventory turnover ratio indicates how effectively the company manages its inventory by measuring how many times the inventory is sold and replaced during a specific period. A higher turnover ratio generally suggests efficient inventory management and timely sales.
The increasing trend from 2022 to 2023, with a turnover of 5.43, indicates that Gentherm has been more effective in selling and replacing its inventory. However, it is essential to analyze the trend in conjunction with other factors such as industry standards, business cycles, and company objectives to gain a comprehensive understanding of Gentherm's inventory management performance.
Peer comparison
Dec 31, 2023