Gentherm Inc (THRM)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	1,313,917	1,302,503	1,304,747	1,326,848	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
Payables	US$ in thousands	226,815	254,555	222,039	226,190	215,827	213,851	207,655	207,887	182,225	208,338	147,136	156,236	122,727	124,000	115,096	132,831	116,043	108,452	65,521	97,065
Payables turnover		5.79	5.12	5.88	5.87	6.17	6.32	6.36	5.81	6.12	4.81	6.21	5.74	7.29	7.41	7.99	6.28	6.87	7.03	11.62	8.71

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,313,917K ÷ $226,815K
= 5.79

Over the period from March 31, 2020, to December 31, 2024, Gentherm Inc's payables turnover ratio fluctuated within a range of 4.81 to 11.62. The payables turnover ratio measures how many times a company pays off its accounts payable during a period. A higher payables turnover ratio indicates that the company is managing its accounts payable effectively by efficiently paying off suppliers and managing its working capital.

Gentherm's payables turnover ratio peaked at 11.62 on June 30, 2020, indicating the company was paying off its payables more frequently during that period. However, the ratio then declined to 4.81 on September 30, 2022, before gradually recovering.

The average payables turnover ratio for Gentherm Inc over this period was approximately 6.62, suggesting that, on average, the company paid off its accounts payable around 6.62 times per year. Overall, fluctuations in the payables turnover ratio may reflect changes in the company's payment terms with suppliers, inventory management practices, or overall efficiency in managing its accounts payable.