Gentherm Inc (THRM)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	77,439	48,307	115,006	89,217	84,260
Total assets	US$ in thousands	1,234,370	1,239,300	935,343	1,022,840	738,832
Operating ROA		6.27%	3.90%	12.30%	8.72%	11.40%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $77,439K ÷ $1,234,370K
= 6.27%

Gentherm Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. In 2023, the operating ROA stood at 8.24%, representing an increase compared to the previous year's ratio of 4.46% in 2022. This improvement indicates that the company generated more operating income relative to its total assets in 2023.

However, when compared to the 12.71% operating ROA in 2021 and the 13.36% in 2019, the 2023 figure appears relatively lower. It suggests that Gentherm Inc's efficiency in utilizing its assets to generate operating income was higher in 2021 and 2019 than in 2023.

The 2020 operating ROA of 9.29% falls between the ratios of 2021 and 2022, indicating a moderate performance in that year. Overall, the trend in operating ROA for Gentherm Inc shows variability across the years, with fluctuations in the company's ability to generate operating income relative to its asset base. Further analysis of the company's operational strategies and financial performance dynamics may provide insights into the factors influencing these fluctuations.