Gentherm Inc (THRM)

Receivables 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
Revenue (ttm)	US$ in thousands	1,448,509	1,428,068	1,388,525	1,281,481	1,193,283	1,106,858	1,024,469	1,025,636	1,044,506	1,083,664	1,096,100	964,238	903,018	845,665	833,218	941,502	976,202	1,001,836	1,016,668	1,043,099
Receivables	US$ in thousands	253,579	263,765	258,157	262,702	252,621	259,798	219,962	223,309	196,020	200,992	209,613	235,756	230,872	211,443	131,708	168,319	169,673	170,823	171,640	175,044
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,448,509K ÷ $253,579K
= 5.71

Gentherm Inc's receivables turnover ratio has shown a fluctuating trend over the past eight quarters, ranging from a low of 3.70 in Q3 2022 to a high of 5.03 in Q4 2023. The overall average receivables turnover ratio for this period is 4.53.

A higher receivables turnover ratio indicates that the company is able to efficiently collect payments from its customers, which is generally a positive sign of strong accounts receivable management. On the other hand, a lower ratio may suggest potential issues with collecting payments in a timely manner.

It is notable that Gentherm Inc's receivables turnover has been generally improving since Q1 2022, with the current ratio at 5.03 in Q4 2023. This indicates that the company has been effective in converting its accounts receivable into cash more rapidly in recent quarters.

Overall, the increasing trend in the receivables turnover ratio, particularly in the most recent quarters, reflects positively on Gentherm Inc's ability to efficiently manage its accounts receivable and collect payments from customers on a timely basis.