Gentherm Inc (THRM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 25.24% | 24.29% | 22.94% | 29.08% | 29.70% |
| Operating profit margin | 7.37% | 5.35% | 4.05% | 11.02% | 9.88% |
| Pretax margin | 7.04% | 3.80% | 3.22% | 10.90% | 9.04% |
| Net profit margin | 4.47% | 2.79% | 2.05% | 8.95% | 6.61% |
Gentherm Inc's profitability ratios for the last five years show fluctuating trends. The gross profit margin has declined from 29.70% in 2020 to 25.24% in 2024, indicating a decrease in the company's ability to generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin fluctuated from 9.88% in 2020 to 7.37% in 2024, with a notable decrease in 2022. This suggests that Gentherm Inc's efficiency in managing operating expenses and generating operating profits has been inconsistent over the years.
The pretax margin also displays variability, starting at 9.04% in 2020, reaching a low of 3.22% in 2022, and then rising to 7.04% in 2024. This indicates fluctuations in the company's profitability before accounting for taxes.
Lastly, the net profit margin follows a similar pattern, declining from 6.61% in 2020 to 4.47% in 2024, with a significant drop in 2022. This indicates the overall profitability of Gentherm Inc after all expenses have been deducted, including taxes.
Overall, Gentherm Inc's profitability has experienced fluctuations over the past five years, indicating some challenges in maintaining consistent levels of profitability. Further analysis of the factors influencing these fluctuations would be necessary to assess the company's financial performance effectively.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.58% | 6.27% | 3.90% | 12.30% | 8.72% |
| Return on assets (ROA) | 5.21% | 3.27% | 1.97% | 9.99% | 5.84% |
| Return on total capital | 12.79% | 8.93% | 5.34% | 16.67% | 11.49% |
| Return on equity (ROE) | 10.53% | 6.26% | 3.64% | 14.29% | 10.18% |
Gentherm Inc's profitability ratios reflect fluctuations over the past five years.
1. Operating Return on Assets (Operating ROA) shows the company's ability to generate profits from its operations relative to its total assets. It increased from 8.72% in 2020 to 12.30% in 2021, but then declined to 3.90% in 2022 before recovering to 6.27% in 2023 and further to 8.58% in 2024. This indicates volatility in the company's operational efficiency.
2. Return on Assets (ROA) measures the company's ability to generate profits from its total assets. It followed a similar trend to Operating ROA, starting at 5.84% in 2020, reaching 9.99% in 2021, declining to 1.97% in 2022, and then recovering to 5.21% in 2024. The company's ability to utilize its assets efficiently has shown variability.
3. Return on Total Capital assesses the company's profitability relative to the total capital invested in the business. It increased from 11.49% in 2020 to 16.67% in 2021, before declining to 5.34% in 2022, and then increasing to 8.93% in 2023 and 12.79% in 2024. The trend indicates fluctuations in the company's overall capital efficiency.
4. Return on Equity (ROE) measures the company's ability to generate returns for its shareholders. It improved from 10.18% in 2020 to 14.29% in 2021, dropped to 3.64% in 2022, and then gradually increased to 10.53% in 2024. The variations in ROE signify changes in the company's profitability relative to its shareholder equity.
In summary, Gentherm Inc's profitability ratios have shown fluctuations over the past five years, indicating varying levels of operational efficiency, asset utilization, and return on capital and equity. It is essential for investors and stakeholders to monitor these ratios to assess the company's financial performance and sustainability.