Gentherm Inc (THRM)

Net profit margin

		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
Net income (ttm)	US$ in thousands	40,343	18,051	12,034	20,657	24,441	48,694	54,553	72,272	93,434	107,379	115,839	80,726	59,690	36,151	27,892	40,965	37,506	39,681	23,439	37,347
Revenue (ttm)	US$ in thousands	1,448,509	1,428,068	1,388,525	1,281,481	1,193,283	1,106,858	1,024,469	1,025,636	1,044,506	1,083,664	1,096,100	964,238	903,018	845,665	833,218	941,502	976,202	1,001,836	1,016,668	1,043,099
Net profit margin		2.79%	1.26%	0.87%	1.61%	2.05%	4.40%	5.33%	7.05%	8.95%	9.91%	10.57%	8.37%	6.61%	4.27%	3.35%	4.35%	3.84%	3.96%	2.31%	3.58%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $40,343K ÷ $1,448,509K
= 2.79%

To analyze Gentherm Inc's net profit margin trend, we can observe the following:

1. The net profit margin has been declining over the past four quarters, from 7.05% in Q1 2022 to 2.75% in Q4 2023.
2. The highest net profit margin was recorded in Q2 2022 at 7.05%, followed by Q3 2022 at 5.35%.
3. The net profit margin saw a significant decrease from Q2 2022 to Q3 2022, indicating a potential issue impacting profitability during that period.
4. The recent quarters, Q3 2023 and Q4 2023, show the lowest net profit margins, indicating potential challenges in controlling costs or generating revenues efficiently.
5. Overall, the declining trend in net profit margin suggests that the company may be facing profitability pressures and may need to assess its cost structure and revenue generation strategies to improve its bottom line performance.