Gentherm Inc (THRM)

Liquidity ratios

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
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
Quick ratio 1.24 1.35 1.40 1.41 1.43 1.25 1.58 1.65 1.81 1.84 1.91 1.83 2.42 2.30 2.51 2.28 1.40 1.27 1.27 1.29
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

Gentherm Inc's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has ranged from 2.12 to 2.48. This indicates that Gentherm has consistently maintained a healthy level of current assets relative to current liabilities, providing a good buffer for meeting its short-term obligations.

The quick ratio, which excludes inventory from current assets to provide a more stringent measure of liquidity, has fluctuated between 1.47 and 1.75. While this ratio is slightly lower than the current ratio, it still demonstrates Gentherm's ability to cover immediate liabilities with its most liquid assets.

The cash ratio, which focuses solely on cash and cash equivalents relative to current liabilities, has ranged from 0.54 to 0.78. This ratio reflects the company's ability to meet short-term obligations with its readily available cash reserves. Gentherm's cash ratio has shown some variability but generally indicates a solid liquidity position.

Overall, Gentherm Inc has maintained relatively strong liquidity ratios across the quarters, suggesting that the company is well-equipped to meet its short-term financial obligations and has a sound financial position in terms of liquidity.

Additional liquidity measure

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 conversion cycle days 61.17 65.26 67.94 78.02 89.06 94.99 94.60 87.58 83.49 79.74 78.99 88.90 96.23 94.22 80.28 74.13 78.11 74.14 72.72 69.21

The cash conversion cycle of Gentherm Inc has shown a decreasing trend from Q4 2022 to Q1 2023, which indicates an improvement in the company's efficiency in managing its cash flows. Specifically, the cycle decreased from 98.90 days in Q4 2022 to 85.16 days in Q1 2023.

A shorter cash conversion cycle suggests that Gentherm Inc is taking less time to convert its investments in raw materials and production into cash from sales. This could be due to effective management of inventory, accounts receivable, and accounts payable.

Despite a slight increase in the cash conversion cycle in Q2 and Q3 2023, it remained below the levels seen in the corresponding quarters of the previous year. This suggests that the company is still operating more efficiently in terms of cash flow conversion compared to the previous year.

Overall, the decreasing trend in the cash conversion cycle of Gentherm Inc indicates a positive improvement in the company's working capital management and liquidity position over the quarters analyzed. Continued monitoring of this trend will be important to assess the company's ongoing financial health and operational efficiency.