Gentherm Inc (THRM)
Payables 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 |
| Payables | US$ in thousands | 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 | 83,035 | 89,293 | 84,009 | 91,286 |
| Payables turnover | 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 | 10.62 | 10.13 | 11.20 | 10.47 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,331,668K ÷ $215,827K
= 6.17
The payables turnover ratio for Gentherm Inc has shown fluctuations over the past eight quarters, ranging from a low of 4.02 in Q3 2022 to a high of 5.26 in Q2 2023. The overall trend indicates that the company is able to manage its accounts payable efficiently, with an average turnover ratio of approximately 5.05 during this period.
A high payables turnover ratio suggests that Gentherm Inc is paying off its suppliers quickly, which may indicate strong liquidity and good relationships with vendors. However, a consistently high ratio could also imply aggressive payment terms that may strain cash flow or suggest potential issues with negotiating favorable terms with suppliers.
Conversely, a low payables turnover ratio may indicate that the company is taking longer to pay its suppliers, potentially signaling liquidity issues or strained relationships with vendors.
It is important for Gentherm Inc to monitor its payables turnover ratio over time and compare it to industry benchmarks to ensure that it is striking the right balance between managing cash flow effectively and maintaining positive relationships with its suppliers.
Peer comparison
Dec 31, 2023