Gentherm Inc (THRM)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 107,015 | 115,077 | 106,481 | 77,814 | 77,439 | 49,296 | 48,376 | 51,790 | 48,306 | 66,627 | 64,510 | 88,447 | 115,006 | 135,032 | 152,834 | 111,265 | 89,217 | 69,339 | 51,162 | 81,116 |
| Total assets | US$ in thousands | 1,247,560 | 1,298,180 | 1,240,550 | 1,252,710 | 1,234,370 | 1,225,600 | 1,244,050 | 1,268,750 | 1,239,300 | 1,241,330 | 947,046 | 967,113 | 935,343 | 943,978 | 933,873 | 932,454 | 1,022,840 | 921,447 | 823,370 | 893,370 |
| Operating ROA | 8.58% | 8.86% | 8.58% | 6.21% | 6.27% | 4.02% | 3.89% | 4.08% | 3.90% | 5.37% | 6.81% | 9.15% | 12.30% | 14.30% | 16.37% | 11.93% | 8.72% | 7.53% | 6.21% | 9.08% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $107,015K ÷ $1,247,560K
= 8.58%
Operating Return on Assets (Operating ROA) measures a company's efficiency in generating profits from its operating activities relative to its total assets. Looking at the historical data of Gentherm Inc's Operating ROA from March 31, 2020, to December 31, 2024, we observe fluctuations in this ratio over time.
- In the initial periods, from March 2020 to June 2021, the Operating ROA showed an increasing trend, indicating improved profitability from operating activities in relation to the company's assets. This suggests effective management of resources to generate earnings.
- The peak in June 2021 marked a significant high point in the company's ability to generate operating profits relative to its total assets, reflecting a period of strong operational performance.
- Subsequently, the Operating ROA experienced a decline from September 2021 to December 2022, indicating a decrease in profitability generated by the company's operating activities compared to its asset base. This could suggest challenges or inefficiencies in utilizing assets to generate earnings during these periods.
- From March 2023 to December 2024, there was a gradual recovery in the Operating ROA, with some fluctuation. Despite the improvements, the ratio did not reach the levels observed during the peak in June 2021.
Overall, the trend in Gentherm Inc's Operating ROA showcases periods of both growth and decline in operating profitability relative to the company's asset base. Further analysis of the underlying factors driving these fluctuations could provide insight into the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024