Gentherm Inc (THRM)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	1,450,255	1,440,414	1,447,026	1,446,364	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
Receivables	US$ in thousands	258,112	270,913	264,759	289,157	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
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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,450,255K ÷ $258,112K
= 5.62

Receivables turnover measures how efficiently a company collects cash from its credit customers. It indicates the number of times a company collects its average accounts receivable balance in a specific period. For Gentherm Inc, the receivables turnover has fluctuated over the years, ranging from a low of 3.91 in December 2020 to a high of 6.33 in June 2020.

A higher receivables turnover ratio generally implies that the company is collecting its receivables more quickly, which is favorable as it indicates effective credit and collection practices. Conversely, a lower ratio may suggest potential issues with collection efforts or an increase in the average collection period, which could lead to cash flow problems.

Gentherm Inc's receivables turnover ratio has shown some variability but has generally remained within a relatively healthy range between 4 and 6 times. The company might want to analyze the factors impacting the fluctuations in this ratio to ensure efficient management of its accounts receivable and maintain a healthy cash flow position.