Gentherm Inc (THRM)

Working capital 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
Total current assets	US$ in thousands	684,015	736,951	689,686	700,432	687,564	700,626	709,549	711,499	683,867	705,972	592,726	602,470	565,845	573,703	559,002	564,469	643,606	574,912	479,782	547,037
Total current liabilities	US$ in thousands	340,293	365,450	326,118	333,095	324,953	312,303	307,622	306,872	285,625	320,224	239,218	243,700	213,089	215,353	207,142	222,750	205,984	190,601	136,010	171,300
Working capital turnover		4.22	3.88	3.98	3.94	3.99	3.68	3.45	3.17	3.00	2.87	2.90	2.86	2.96	3.02	3.12	2.82	2.06	2.20	2.42	2.51

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,450,255K ÷ ($684,015K – $340,293K)
= 4.22

Gentherm Inc's working capital turnover has demonstrated a fluctuating trend over the periods provided. Initially starting at 2.51 in March 2020, the working capital turnover decreased slightly to 2.42 in June 2020 before experiencing a more significant decline to 2.06 by December 2020. However, there was a notable improvement in performance as the ratio increased to 3.12 by June 2021.

Subsequently, Gentherm Inc maintained relatively strong working capital turnover ratios ranging from 2.86 to 3.17 between March 2022 and March 2023, indicating efficient utilization of working capital to generate sales. The ratio further increased to 3.99 by December 2023 and reached a peak of 4.22 by December 2024, reflecting an enhanced efficiency in converting working capital into revenue during these periods.

Overall, the upward trajectory in the working capital turnover ratio suggests that Gentherm Inc has been effectively managing its working capital to support sales growth and operational activities, thus potentially improving its overall financial performance and liquidity position.