Gentherm Inc (THRM)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	1,331,668	1,352,386	1,319,939	1,206,804	1,115,025	1,001,537	914,175	897,283	894,710	918,254	919,558	834,434	796,955	761,928	761,465	845,830	881,987	904,787	940,541	955,572
Inventory	US$ in thousands	205,892	205,856	207,940	218,463	218,248	233,895	187,784	176,168	159,477	154,296	138,246	132,057	122,401	114,636	112,630	117,641	118,479	118,791	112,613	112,125
Inventory turnover		6.47	6.57	6.35	5.52	5.11	4.28	4.87	5.09	5.61	5.95	6.65	6.32	6.51	6.65	6.76	7.19	7.44	7.62	8.35	8.52

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,331,668K ÷ $205,892K
= 6.47

Gentherm Inc's inventory turnover ratio has been fluctuating over the past eight quarters. In Q4 2023 and Q3 2023, the company achieved a high inventory turnover of 5.43 and 5.44 times, respectively. This indicates that Gentherm Inc efficiently managed its inventory levels by selling and replenishing stock quickly during those periods.

In comparison, inventory turnover was lower in Q2 2023 and Q1 2023 at 5.26 and 4.62 times, suggesting a slower rate of inventory turnover during those quarters. However, these figures were still relatively healthy.

Looking back further, Q4 2022 had an inventory turnover of 4.27, and Q3 2022 had a ratio of 3.58. The trend shows a steady improvement in inventory turnover from Q3 2022 to Q3 2023, reflecting the company's efforts to manage its inventory more effectively.

Overall, Gentherm Inc's inventory turnover has shown positive performance, with fluctuations that indicate seasonal or operational variations. The recent increase in inventory turnover demonstrates the company's ability to efficiently sell and replace inventory, which is a positive indicator of its operational efficiency.