Gentherm Inc (THRM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 134,134 | 149,673 | 153,891 | 190,606 | 268,345 |
| Short-term investments | US$ in thousands | — | 2,062 | 2,772 | — | — |
| Total current liabilities | US$ in thousands | 340,293 | 324,953 | 285,625 | 213,089 | 205,984 |
| Cash ratio | 0.39 | 0.47 | 0.55 | 0.89 | 1.30 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($134,134K
+ $—K)
÷ $340,293K
= 0.39
The cash ratio of Gentherm Inc has been declining over the past five years. In December 31, 2020, the cash ratio stood at 1.30, indicating that the company had $1.30 of cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2024, the cash ratio had decreased to 0.39, raising concerns about the company's liquidity position.
A cash ratio below 1 suggests that Gentherm Inc may not have enough liquid assets to cover its short-term liabilities. The decreasing trend in the cash ratio could signal potential cash flow challenges or inefficiencies in managing current liabilities.
It is important for investors and stakeholders to closely monitor Gentherm Inc's liquidity position and cash management practices, as a low cash ratio may put the company at risk during times of financial stress or unexpected circumstances.
Peer comparison
Dec 31, 2024