Gentherm Inc (THRM)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	149,673	153,891	190,606	268,345	50,443
Short-term investments	US$ in thousands	—	2,772	—	—	1,242
Total current liabilities	US$ in thousands	324,953	285,625	213,089	205,984	156,704
Cash ratio		0.46	0.55	0.89	1.30	0.33

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($149,673K + $—K) ÷ $324,953K
= 0.46

The cash ratio of Gentherm Inc has exhibited fluctuations over the past five years, as follows:

- The cash ratio was 0.58 in 2023, indicating that for every dollar of current liabilities, the company had $0.58 in cash and cash equivalents to cover its short-term obligations.
- In 2022, the cash ratio improved to 0.65, suggesting a slight increase in the company's ability to meet its short-term liabilities with available cash reserves.
- The cash ratio was highest in 2021 at 0.94, reflecting a stronger liquidity position compared to the previous years.
- In 2020, the cash ratio decreased to 1.36, indicating a significant increase in the company's ability to cover its current liabilities with cash on hand.
- Conversely, the cash ratio was lowest in 2019 at 0.42, indicating a weaker liquidity position during that year.

Overall, fluctuations in Gentherm Inc's cash ratio suggest varying levels of liquidity and the company's ability to meet its short-term financial obligations with available cash and cash equivalents. The trend indicates the importance of monitoring the company's liquidity position to ensure its ability to address short-term financial needs.