Gentherm Inc (THRM)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.47 | 6.57 | 6.35 | 5.52 | 5.11 | 4.28 | 4.87 | 5.09 | 5.61 | 5.95 | 6.65 | 6.32 | 6.51 | 6.65 | 6.76 | 7.19 | 7.44 | 7.62 | 8.35 | 8.52 |
| Receivables turnover | 5.71 | 5.41 | 5.38 | 4.88 | 4.72 | 4.26 | 4.66 | 4.59 | 5.33 | 5.39 | 5.23 | 4.09 | 3.91 | 4.00 | 6.33 | 5.59 | 5.75 | 5.86 | 5.92 | 5.96 |
| 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 |
| Working capital turnover | 3.99 | 3.68 | 3.45 | 3.17 | 3.00 | 2.87 | 2.90 | 2.86 | 2.96 | 3.02 | 3.12 | 2.82 | 2.06 | 2.20 | 2.42 | 2.51 | 4.50 | 4.67 | 4.68 | 4.43 |
Gentherm Inc's activity ratios provide insights into the company's efficiency in managing its assets and liabilities during the specified quarters.
1. Inventory turnover: This ratio measures how effectively Gentherm is managing its inventory by assessing how many times the company sells and replaces its inventory during a period. The increasing trend in inventory turnover from Q1 2023 to Q4 2023 indicates that Gentherm is selling its products more quickly, which is a positive sign for the company's cash flow and liquidity.
2. Receivables turnover: The receivables turnover ratio reveals how efficiently Gentherm collects payments from its customers. The fluctuations in this ratio show that Gentherm's collection process varies over the quarters. Despite some fluctuations, the trend shows improvement in receivables turnover from Q1 2022 to Q4 2023, suggesting a more efficient accounts receivable management.
3. Payables turnover: This ratio reflects how efficiently Gentherm pays its suppliers. The consistent range of payables turnover ratios over time indicates that Gentherm maintains a stable payment cycle with its suppliers. The slight decrease in Q4 2023 compared to Q3 2023 could signify a longer payment cycle but remains relatively stable overall.
4. Working capital turnover: The working capital turnover ratio assesses how effectively Gentherm utilizes its working capital to generate sales revenue. The increasing trend in this ratio from Q1 2022 to Q4 2023 demonstrates that Gentherm is generating more revenue with its working capital over time, indicating improved efficiency in utilizing its resources.
Overall, the activity ratios for Gentherm Inc show positive trends in inventory turnover, receivables turnover, and working capital turnover, indicating improved efficiency in managing assets and generating sales. The stability in payables turnover suggests a consistent payment cycle with suppliers.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 56.43 | 55.56 | 57.50 | 66.07 | 71.44 | 85.24 | 74.98 | 71.66 | 65.06 | 61.33 | 54.87 | 57.76 | 56.06 | 54.92 | 53.99 | 50.77 | 49.03 | 47.92 | 43.70 | 42.83 |
| Days of sales outstanding (DSO) | days | 63.90 | 67.42 | 67.86 | 74.82 | 77.27 | 85.67 | 78.37 | 79.47 | 68.50 | 67.70 | 69.80 | 89.24 | 93.32 | 91.26 | 57.70 | 65.25 | 63.44 | 62.24 | 61.62 | 61.25 |
| Number of days of payables | days | 59.16 | 57.72 | 57.42 | 62.88 | 59.65 | 75.93 | 58.75 | 63.55 | 50.07 | 49.29 | 45.69 | 58.10 | 53.15 | 51.95 | 31.41 | 41.89 | 34.36 | 36.02 | 32.60 | 34.87 |
Gentherm Inc's activity ratios provide insight into the efficiency of the company's operations.
1. Days of Inventory on Hand (DOH):
- The DOH has shown a decreasing trend over the past eight quarters, indicating a more efficient management of inventory levels.
- In Q4 2023, the DOH stood at 67.25 days, which means the company holds inventory for approximately 67 days before selling it.
- This ratio has improved significantly from Q4 2022 when it was 85.56 days, reflecting better inventory turnover.
2. Days of Sales Outstanding (DSO):
- The DSO measures the average number of days it takes for the company to collect revenue after a sale is made.
- Gentherm Inc's DSO has also been declining gradually over the quarters, signaling improved collection efficiency.
- In Q4 2023, the DSO was 72.61 days, down from 84.77 days in Q4 2022, indicating faster cash conversion from sales.
3. Number of Days of Payables:
- This ratio represents the average number of days it takes for the company to pay its suppliers.
- The trend in the number of days of payables has been fluctuating, with some quarters showing a decrease and others an increase.
- In Q4 2023, the number of days of payables was 70.50 days, down from 71.44 days in Q4 2022, suggesting a slight improvement in payment terms with suppliers.
Overall, the decreasing trend in Days of Inventory on Hand and Days of Sales Outstanding, coupled with relatively stable Number of Days of Payables, indicates that Gentherm Inc has been enhancing its operational efficiency and working capital management. These improvements are crucial for maintaining a healthy cash flow and optimizing the company's overall financial performance.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 5.91 | 6.03 | 5.79 | 5.29 | 4.88 | 4.85 | 6.83 | 6.73 | 6.73 | 6.96 | 7.05 | 6.37 | 5.92 | 5.61 | 5.58 | 6.19 | 6.08 | 6.15 | 6.00 | 6.20 |
| Total asset turnover | 1.17 | 1.17 | 1.12 | 1.01 | 0.96 | 0.89 | 1.08 | 1.06 | 1.12 | 1.15 | 1.17 | 1.03 | 0.88 | 0.92 | 1.01 | 1.05 | 1.32 | 1.36 | 1.35 | 1.37 |
Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate sales and how well it is managing its fixed assets. In the case of Gentherm Inc, the fixed asset turnover ratio has shown an increasing trend over the past eight quarters, from 4.87 in Q3 2022 to 6.11 in Q3 2023. This indicates that the company is generating more sales relative to its investment in fixed assets, showcasing improved efficiency in utilizing its long-term assets.
The total asset turnover ratio has also been trending upwards, from 0.89 in Q3 2022 to 1.18 in Q3 2023. This suggests that Gentherm Inc is generating more revenue for each dollar of total assets employed, indicating effective asset utilization and potentially increased operational efficiency.
Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios for Gentherm Inc implies positive developments in the company's management of its long-term assets, signaling improved efficiency and effectiveness in generating sales from its asset base.