Gentherm Inc (THRM)

Current 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
Total current assets	US$ in thousands	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	373,863	384,841	378,431	401,881
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
Current ratio		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	2.39	2.26	2.34	2.42

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 exhibited some fluctuations over the past eight quarters. The ratio has ranged from a low of 2.12 in Q4 2023 to a high of 2.48 in Q2 2022. Generally, the company has maintained a relatively healthy current ratio throughout this period, indicating a strong ability to meet its short-term financial obligations.

The current ratio measures the company's ability to cover its current liabilities with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is a positive signal for creditors and investors. In the case of Gentherm Inc, the current ratio has consistently been above 2 over the past two years, suggesting that the company has a comfortable buffer to meet its short-term obligations.

Although there have been minor fluctuations in the current ratio, overall, Gentherm Inc appears to have a solid liquidity position. Investors and creditors may view this as a positive indicator of the company's financial health and its ability to withstand short-term financial challenges.