Gentherm Inc (THRM)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,447,650 | 1,192,770 | 1,044,070 | 902,575 | 968,913 |
| Receivables | US$ in thousands | 253,579 | 252,621 | 196,020 | 230,872 | 169,673 |
| Receivables turnover | 5.71 | 4.72 | 5.33 | 3.91 | 5.71 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,447,650K ÷ $253,579K
= 5.71
The receivables turnover ratio for Gentherm Inc has been fluctuating over the past five years. In 2023, the ratio was 5.03, indicating that the company collected its accounts receivable approximately 5.03 times during the year. This represents an improvement from 2022, where the ratio was 4.31.
The higher receivables turnover in 2023 suggests that Gentherm Inc managed to collect its accounts receivable more efficiently compared to the previous year. This may indicate better credit policies, more timely collection efforts, or improved customer payment behavior.
Comparing the 2023 ratio to the ratios in 2021, 2020, and 2019, it appears that Gentherm Inc's receivables turnover has been relatively stable over this period, with the ratio ranging from 3.78 to 5.20. This consistency implies that the company has been effective in managing its receivables turnover over the years.
In conclusion, the receivables turnover ratio for Gentherm Inc in 2023 showed an improvement compared to the previous year, reflecting efficient management of accounts receivable collections. This trend indicates a positive development in the company's ability to convert credit sales into cash.
Peer comparison
Dec 31, 2023