Gentherm Inc (THRM)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,452,030 | 1,447,650 | 1,192,770 | 1,044,070 | 902,575 |
| Total assets | US$ in thousands | 1,247,560 | 1,234,370 | 1,239,300 | 935,343 | 1,022,840 |
| Total asset turnover | 1.16 | 1.17 | 0.96 | 1.12 | 0.88 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,452,030K ÷ $1,247,560K
= 1.16
Total asset turnover indicates how efficiently a company utilizes its assets to generate revenue. Gentherm Inc's total asset turnover has shown an increasing trend over the past five years, from 0.88 in 2020 to 1.16 in 2024. This suggests that the company has been able to generate more revenue from its assets over time.
In 2024, Gentherm Inc generated $1.16 in revenue for every $1 of assets, indicating a relatively efficient use of its assets. This improvement in total asset turnover could be attributed to better asset management, increased sales, or stronger operational efficiency.
While the total asset turnover has fluctuated slightly between 2021 and 2024, the general trend is positive, indicating that Gentherm Inc has improved its asset utilization and efficiency in generating revenue.
Overall, the increasing trend in total asset turnover reflects positively on Gentherm Inc's ability to generate revenue efficiently from its assets, which is a key indicator of financial health and operational effectiveness.
Peer comparison
Dec 31, 2024