Gentherm Inc (THRM)

Current 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
Total current assets	US$ in thousands	684,015	736,951	689,686	700,432	687,564	700,626	709,549	711,499	683,867	705,972	592,726	602,470	565,845	573,703	559,002	564,469	643,606	574,912	479,782	547,037
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
Current ratio		2.01	2.02	2.11	2.10	2.12	2.24	2.31	2.32	2.39	2.20	2.48	2.47	2.66	2.66	2.70	2.53	3.12	3.02	3.53	3.19

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $684,015K ÷ $340,293K
= 2.01

The current ratio of Gentherm Inc has shown a fluctuating trend over the past few years. As of December 31, 2024, the current ratio stood at 2.01, indicating that the company had $2.01 in current assets to cover each dollar of current liabilities. This suggests that Gentherm Inc may have a relatively healthy liquidity position.

However, the current ratio has been gradually declining from a peak of 3.53 on June 30, 2020, to the current level of 2.01 on December 31, 2024. This downward trend raises some concerns about the company's ability to meet its short-term obligations with its current assets.

It is important for Gentherm Inc to closely monitor and manage its current assets and liabilities to ensure that it maintains a reasonable current ratio to support its short-term financial obligations and operations effectively. Further analysis and comparisons with industry benchmarks could provide additional insights into the company's financial health and liquidity position.