Gentherm Inc (THRM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 134,134 | 149,673 | 153,891 | 190,606 | 268,345 |
| Short-term investments | US$ in thousands | — | 2,062 | 2,772 | — | — |
| Receivables | US$ in thousands | 258,112 | 253,579 | 252,621 | 196,020 | 230,872 |
| Total current liabilities | US$ in thousands | 340,293 | 324,953 | 285,625 | 213,089 | 205,984 |
| Quick ratio | 1.15 | 1.25 | 1.43 | 1.81 | 2.42 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($134,134K
+ $—K
+ $258,112K)
÷ $340,293K
= 1.15
The quick ratio of Gentherm Inc has demonstrated a decreasing trend over the specified period, declining from 2.42 as of December 31, 2020, to 1.15 as of December 31, 2024. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets. The decreasing trend indicates a potential weakening liquidity position as the company may have fewer liquid assets relative to its current liabilities in recent years. It is essential for stakeholders to monitor this ratio closely as it may signal a need for the company to manage its short-term liquidity more effectively to meet its financial obligations.
Peer comparison
Dec 31, 2024