Gentherm Inc (THRM)

Payables 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
Payables	US$ in thousands	226,815	215,827	182,225	122,727	116,043
Payables turnover		5.79	6.17	6.12	7.29	6.87

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,313,390K ÷ $226,815K
= 5.79

Based on the provided data, Gentherm Inc's payables turnover has exhibited some fluctuations over the years. The payables turnover ratio measures how efficiently a company is managing its payables by calculating how many times a company pays off its average accounts payable balance during a specific period.

In 2020, Gentherm Inc's payables turnover ratio was 6.87, indicating that the company paid off its accounts payable almost 6.87 times during the year. The ratio increased to 7.29 in 2021, suggesting an improvement in the efficiency of managing payables.

However, in 2022, there was a decrease in the payables turnover ratio to 6.12, followed by a slight increase in 2023 to 6.17. In 2024, the ratio dropped further to 5.79, indicating a decrease in the frequency of paying off accounts payable compared to the previous years.

Overall, the trend in Gentherm Inc's payables turnover suggests some variability in the efficiency of managing payables over the years. Further analysis of the company's financial performance and working capital management practices may be needed to understand the reasons behind these fluctuations in the payables turnover ratio.