Gentherm Inc (THRM)

Quick 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
Cash	US$ in thousands	149,673	154,354	168,671	166,630	153,891	139,163	157,258	177,917	190,606	195,086	186,863	170,955	268,345	226,533	209,170	222,939	50,443	45,200	33,677	38,769
Short-term investments	US$ in thousands	—	3,506	3,445	2,073	2,772	2,498	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	253,579	263,765	258,157	262,702	252,621	259,798	219,962	223,309	196,020	200,992	209,613	235,756	230,872	211,443	131,708	168,319	169,673	170,823	171,640	175,044
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
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($149,673K + $—K + $253,579K) ÷ $324,953K
= 1.24

The quick ratio of Gentherm Inc has been relatively stable over the past eight quarters, ranging between 1.47 and 1.75. This indicates that the company has generally maintained a strong ability to cover its short-term liabilities with its most liquid assets, such as cash, cash equivalents, and accounts receivable.

A quick ratio above 1 suggests that Gentherm Inc has an adequate level of liquid assets to meet its short-term obligations. A higher quick ratio, such as seen in Q2 2022 and Q3 2023, indicates a stronger liquidity position and a better ability to cover short-term liabilities. Conversely, a lower quick ratio, as seen in Q4 2023, suggests a slight decrease in liquidity but still remains above the threshold of 1.

Overall, Gentherm Inc's quick ratio indicates a sound liquidity position, providing a degree of financial flexibility to meet its short-term financial obligations. It is important for the company to continue monitoring its quick ratio to ensure it remains at a level that supports its ongoing operations and financial stability.