Gentherm Inc (THRM)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	50,443	45,200	33,677	38,769
Short-term investments	US$ in thousands	—	3,506	3,445	2,073	2,772	2,498	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.46	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	0.32	0.27	0.21	0.23

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 been relatively stable over the past eight quarters, ranging from 0.54 to 0.78. The cash ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

The downward trend in the cash ratio from Q2 2022 to Q3 2022 may suggest a decrease in the company's liquidity position during that period. However, there was a notable improvement in the cash ratio from Q3 2022 to Q4 2022, which continued through Q1 2023. This improvement indicates an enhanced ability to meet short-term obligations with existing cash resources.

Overall, the cash ratio of Gentherm Inc has shown some fluctuations but has generally remained within a reasonable range, providing a reasonable level of liquidity throughout the quarters analyzed. It is important for the company to monitor its cash position closely to ensure it can meet its short-term obligations efficiently.