Gentherm Inc (THRM)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.17 | 6.12 | 7.29 | 6.87 | 10.62 | |
| Number of days of payables | days | 59.16 | 59.65 | 50.07 | 53.15 | 34.36 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.17
= 59.16
The number of days of payables for Gentherm Inc has shown a fluctuating trend over the past five years. In 2023, the number of days of payables stood at 70.50 days, slightly lower than the previous year's figure of 71.44 days. This indicates that the company took, on average, 70.50 days to pay its suppliers for goods and services purchased during the year.
Comparing the current level to previous years, there has been an increase compared to 2021 when the number of days of payables was at 60.33 days. However, it is still lower than the levels seen in 2020 and 2019, when the company took 65.67 days and 44.35 days, respectively, to settle its payables.
The upward trend in the number of days of payables may suggest that Gentherm Inc is taking longer to pay its suppliers, which could be indicative of cash flow management strategies or changes in payment terms. Overall, further analysis of the company's payables turnover and liquidity position would provide a more holistic view of its financial health and operational efficiency.
Peer comparison
Dec 31, 2023