Gentherm Inc (THRM)

Working capital 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
Total current assets	US$ in thousands	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	373,863	384,841	378,431	401,881
Total current liabilities	US$ in thousands	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	156,704	170,500	161,415	166,354
Working capital turnover		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	4.50	4.67	4.68	4.43

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,448,509K ÷ ($687,564K – $324,953K)
= 3.99

Gentherm Inc's working capital turnover has shown a positive trend over the past eight quarters, indicating that the company is efficiently utilizing its working capital to generate sales. The working capital turnover ratio has steadily increased from 2.86 in Q1 2022 to 4.05 in Q4 2023. This indicates that the company is generating $4.05 in sales for every $1 of working capital invested.

The consistent improvement in the working capital turnover ratio reflects the company's ability to effectively manage its current assets and liabilities to support operational activities. A higher working capital turnover ratio suggests that Gentherm Inc is able to generate sales more efficiently using its current assets, which is a positive signal for investors and creditors.

Overall, the increasing trend in the working capital turnover ratio for Gentherm Inc highlights the company's efficient management of working capital and its ability to generate sales with a lower investment in current assets.