Gentherm Inc (THRM)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.78 | 5.57 | 6.09 | 6.04 | 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 |
| Receivables turnover | 5.62 | 5.32 | 5.47 | 5.00 | 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 |
| 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 |
| Working capital turnover | 4.22 | 3.88 | 3.98 | 3.94 | 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 |
Gentherm Inc's activity ratios provide insights into the efficiency of the company's operations over time.
1. Inventory turnover: The trend shows a gradual decline from 7.19 in March 2020 to 5.78 in December 2024, indicating that inventory is being sold less frequently. This could be a sign of potential issues such as overstocking or slowing sales turnover.
2. Receivables turnover: This ratio fluctuates but generally maintains a stable range, suggesting that Gentherm is collecting its receivables at a consistent pace. The increase in turnover from 3.91 in December 2020 to 5.62 in December 2024 indicates improvements in the collection process.
3. Payables turnover: The fluctuations in this ratio indicate variations in payment cycles to suppliers. A decreasing trend from 11.62 in June 2020 to 5.79 in December 2024 could imply either shorter payment periods or possibly strained supplier relationships.
4. Working capital turnover: This ratio demonstrates how effectively Gentherm is utilizing its working capital to generate sales. The steady increase from 2.06 in December 2020 to 4.22 in December 2024 suggests that the company is efficiently using its resources to drive revenue growth.
Overall, while Gentherm Inc shows some areas for potential operational improvement, such as inventory management and payables turnover optimization, the trend in working capital turnover indicates positive operational efficiency and effective use of resources to drive business growth.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 63.16 | 65.50 | 59.97 | 60.40 | 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 |
| Days of sales outstanding (DSO) | days | 64.96 | 68.65 | 66.78 | 72.97 | 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 |
| Number of days of payables | days | 63.01 | 71.33 | 62.11 | 62.22 | 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 |
Gentherm Inc's activity ratios can provide insights into how efficiently the company manages its working capital.
1. Days of Inventory on Hand (DOH):
- The trend in Gentherm's DOH shows an increase from 50.77 days on March 31, 2020, to 63.16 days on December 31, 2024.
- A rising DOH may indicate inventory management challenges, tying up cash and potentially leading to obsolescence.
2. Days of Sales Outstanding (DSO):
- Gentherm's DSO ranged from 57.70 days on June 30, 2020, to 64.96 days on December 31, 2024.
- The DSO measures how long it takes to collect payment after a sale and higher DSO may indicate delays in receiving cash from customers.
3. Number of Days of Payables:
- The number of days of payables for Gentherm varied from 31.41 days on June 30, 2020, to 75.93 days on September 30, 2022.
- An increasing trend in payables days could suggest the company is taking longer to pay its suppliers which may strain relationships or result in missed discounts.
Overall, a thorough analysis of Gentherm Inc's activity ratios suggests potential areas for improvement in its working capital management practices to enhance operational efficiency and maintain healthy liquidity levels.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 5.73 | 5.68 | 5.87 | 5.98 | 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 |
| Total asset turnover | 1.16 | 1.11 | 1.17 | 1.15 | 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 |
The fixed asset turnover ratio of Gentherm Inc has shown some fluctuation over the years, ranging from a high of 7.05 in June 2021 to a low of 4.85 in September 2022. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales. A higher ratio indicates that the company is able to generate more revenue per dollar of fixed assets.
On the other hand, the total asset turnover ratio has also varied, with values ranging from 0.88 in December 2020 to 1.17 in multiple quarters. This ratio reflects Gentherm Inc's overall efficiency in using its total assets to generate revenue. A higher ratio suggests better efficiency in generating sales from its total asset base.
Overall, it is important to analyze these ratios in conjunction with other financial metrics and industry benchmarks to get a holistic view of Gentherm Inc's operational efficiency and asset utilization over the long term.