Gentherm Inc (THRM)

Cash ratio

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
Cash and cash equivalents US$ in thousands 134,134 150,581 123,466 125,107 149,673 154,354 168,671 166,630 153,891 139,163 157,258 177,917 190,606 195,086 186,863 170,955 268,345 226,533 209,170 222,939
Short-term investments US$ in thousands — — 2,058 2,366 2,062 3,506 3,445 2,073 2,772 2,498 — — — — — — — — — —
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
Cash ratio 0.39 0.41 0.38 0.38 0.47 0.51 0.56 0.55 0.55 0.44 0.66 0.73 0.89 0.91 0.90 0.77 1.30 1.19 1.54 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 displayed fluctuations over the last few years. Starting at a relatively high level of 1.30 in March 2020, the ratio increased to 1.54 by June 2020. However, it experienced a decline in the subsequent periods, dropping to 0.77 by March 2021. From there, the ratio showed some improvement, reaching 0.91 by September 2021 before decreasing again.

During the most recent periods up to December 2024, the cash ratio remained relatively stable, fluctuating around the range of 0.38 to 0.47. This indicates that Gentherm's ability to cover its current liabilities with its cash and cash equivalents has been somewhat constrained but has shown some consistency in the short-term liquidity position. The declining trend since the initial high points in 2020 suggests potential changes in the company's cash management strategies or operational cash flow generation. It would be prudent for stakeholders to monitor the company's cash flow position closely to ensure liquidity adequacy for meeting short-term obligations.