Gentherm Inc (THRM)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 107,015 | 77,439 | 48,307 | 115,006 | 89,217 |
| Total assets | US$ in thousands | 1,247,560 | 1,234,370 | 1,239,300 | 935,343 | 1,022,840 |
| Operating ROA | 8.58% | 6.27% | 3.90% | 12.30% | 8.72% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $107,015K ÷ $1,247,560K
= 8.58%
Operating ROA is a key financial ratio that reflects the efficiency and profitability of Gentherm Inc in generating returns from its assets solely from its core operations.
Analyzing the trend of Gentherm Inc's Operating ROA over the past five years, we observe the following:
1. December 31, 2020: Operating ROA was at 8.72%. This indicates that for every dollar of assets employed in the company's operations, it generated a return of 8.72 cents in that year.
2. December 31, 2021: Operating ROA improved significantly to 12.30%, reflecting a more efficient utilization of assets to generate income. This suggests improved operational performance and potential profitability during this period.
3. December 31, 2022: Operating ROA declined to 3.90% compared to the previous year. This drop indicates potential challenges or inefficiencies in the company's operations in that year, resulting in a lower return on its assets.
4. December 31, 2023: Operating ROA increased to 6.27%, showing some recovery from the previous year's decline. However, it still remains below the levels seen in 2021.
5. December 31, 2024: Operating ROA further improved to 8.58%, approaching the levels seen in 2020. This suggests a potential focus on operational efficiency and profitability enhancement in the most recent year.
Overall, the trend in Operating ROA for Gentherm Inc shows fluctuations over the five-year period, with notable improvements in some years and declines in others. It is essential for the company to consistently monitor and improve its operational efficiency to enhance returns generated from its assets over time.
Peer comparison
Dec 31, 2024