Gentherm Inc (THRM)
Working capital 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 current assets | US$ in thousands | 684,015 | 687,564 | 683,867 | 565,845 | 643,606 |
| Total current liabilities | US$ in thousands | 340,293 | 324,953 | 285,625 | 213,089 | 205,984 |
| Working capital turnover | 4.22 | 3.99 | 3.00 | 2.96 | 2.06 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,452,030K ÷ ($684,015K – $340,293K)
= 4.22
Gentherm Inc's working capital turnover has shown a positive trend over the past five years, indicating improved efficiency in managing its working capital. The ratio has increased steadily from 2.06 in December 31, 2020, to 4.22 in December 31, 2024. This signifies that the company has been able to generate higher sales revenue relative to the investment in its working capital.
A higher working capital turnover ratio suggests that Gentherm Inc is effectively utilizing its current assets, such as inventory and accounts receivable, to generate sales. This efficient management of working capital can lead to enhanced liquidity and profitability for the company.
Overall, the increasing trend in Gentherm Inc's working capital turnover ratio reflects a positive aspect of the company's operational efficiency and financial management practices.
Peer comparison
Dec 31, 2024