Gentherm Inc (THRM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.29% | 22.94% | 29.08% | 29.70% | 29.76% |
| Operating profit margin | 5.35% | 4.05% | 11.02% | 9.88% | 8.70% |
| Pretax margin | 3.80% | 3.22% | 10.90% | 9.04% | 4.93% |
| Net profit margin | 2.79% | 2.05% | 8.95% | 6.61% | 3.87% |
Gentherm Inc's profitability ratios have exhibited variations over the past five years. Starting with the gross profit margin, the company's performance indicates a fluctuating trend, with values ranging from 22.72% in 2022 to 29.67% in 2019. This suggests that the company's ability to generate profit from its core operations has been inconsistent.
Moving on to the operating profit margin, Gentherm Inc has shown a similar pattern of fluctuation, with values ranging from 4.59% in 2022 to 11.36% in 2021. This indicates that the company's efficiency in managing its operating expenses and generating operating income has varied over the years.
The pretax margin, which represents the company's profitability before accounting for taxes, also displays variability. Values have ranged from 3.19% in 2022 to 10.88% in 2021. This suggests that Gentherm Inc's ability to generate profit relative to its total revenue before tax implications has not been consistent.
Lastly, the net profit margin, indicating the company's bottom-line profitability after all expenses have been deducted, has shown a similar trend of fluctuation. Values have ranged from 2.03% in 2022 to 8.93% in 2021. This indicates that Gentherm Inc's ability to generate profit for its shareholders after all expenses, including taxes, has varied over the years.
In summary, Gentherm Inc's profitability ratios have demonstrated a lack of consistent performance over the past five years. It is essential for the company to focus on improving its efficiency in generating profits and managing costs to ensure sustainable and stable profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.27% | 3.90% | 12.30% | 8.72% | 11.40% |
| Return on assets (ROA) | 3.27% | 1.97% | 9.99% | 5.84% | 5.08% |
| Return on total capital | 8.93% | 5.34% | 16.67% | 11.49% | 14.99% |
| Return on equity (ROE) | 6.26% | 3.64% | 14.29% | 10.18% | 7.75% |
Gentherm Inc's profitability ratios reflect its ability to generate earnings relative to its assets, capital, and equity over the past five years.
Starting with the Operating return on assets (Operating ROA), the company's performance has shown fluctuations, with a notable increase from 2022 to 2023. This ratio indicates that Gentherm Inc is effectively utilizing its assets to generate operating income, with the 2023 figure standing at 8.24%.
Moving on to the Return on assets (ROA), the trend shows variability over the years, with a substantial drop in 2023 compared to the previous year. This ratio illustrates how profitable the company is relative to its total assets, with the latest figure at 3.27% indicating a decrease in profitability.
The Return on total capital measures the company's efficiency in generating returns from both debt and equity capital. Gentherm Inc saw an increase in this ratio from 2022 to 2023, indicating improved performance in utilizing its total capital to generate profits.
Lastly, the Return on equity (ROE) reflects the return generated on shareholders' equity investment. The trend for this ratio fluctuates, with a notable increase in 2023 compared to the previous year. The latest figure of 6.26% suggests that Gentherm Inc is generating a positive return on equity for its shareholders.
In summary, Gentherm Inc's profitability ratios demonstrate varying levels of performance over the past five years, highlighting the company's ability to generate profits from its assets, capital, and equity. It is crucial for stakeholders to monitor these ratios to assess the company's financial health and efficiency in utilizing its resources effectively to maximize returns.