Gentherm Inc (THRM)

Payables 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
Payables US$ in thousands 215,827 182,225 122,727 116,043 83,035
Payables turnover 6.17 6.12 7.29 6.87 10.62

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,331,620K ÷ $215,827K
= 6.17

The payables turnover ratio of Gentherm Inc has shown some fluctuations over the past five years. In 2023, the payables turnover ratio increased to 5.18, compared to 5.11 in 2022. This indicates that the company is taking slightly longer to pay its suppliers in 2023.

When compared to 2021 and 2020, where the payables turnover ratios were 6.05 and 5.56 respectively, we can see a downward trend in the company's efficiency in paying its payables. This may suggest a potential slowdown in the company's payment cycle, which could impact its relationships with suppliers if not managed effectively.

However, it is worth noting that Gentherm Inc had a relatively high payables turnover ratio of 8.23 in 2019, which indicates that the company was more efficient in paying its suppliers that year compared to the recent years.

Overall, it is important for Gentherm Inc to closely monitor its payables turnover ratio and implement strategies to maintain efficient payment cycles to ensure positive relationships with suppliers and optimize its working capital management.


Peer comparison

Dec 31, 2023