Gentherm Inc (THRM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 687,564 | 683,867 | 565,845 | 643,606 | 373,863 |
| Total current liabilities | US$ in thousands | 324,953 | 285,625 | 213,089 | 205,984 | 156,704 |
| Current ratio | 2.12 | 2.39 | 2.66 | 3.12 | 2.39 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $687,564K ÷ $324,953K
= 2.12
The current ratio of Gentherm Inc has displayed fluctuations over the past five years. The ratio declined from 3.12 in 2020 to 2.66 in 2021 before further decreasing to 2.39 in 2022 and then to 2.12 in 2023.
A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting it is better positioned to cover its short-term obligations. Gentherm's current ratio has been consistently above 1 in all the years presented, indicating a strong ability to meet its short-term liabilities.
Even though there has been a downward trend in the current ratio in recent years, the ratio remains above 2, indicating that Gentherm still has a comfortable cushion of current assets to cover its current liabilities. However, it would be advisable for the company to monitor this trend closely to ensure its liquidity position remains robust in the future.
Peer comparison
Dec 31, 2023