Gentherm Inc (THRM)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 64,947 | 40,343 | 24,441 | 93,434 | 59,690 |
| Total assets | US$ in thousands | 1,247,560 | 1,234,370 | 1,239,300 | 935,343 | 1,022,840 |
| ROA | 5.21% | 3.27% | 1.97% | 9.99% | 5.84% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $64,947K ÷ $1,247,560K
= 5.21%
Based on the provided data for Gentherm Inc's Return on Assets (ROA) from 2020 to 2024, the company's performance in utilizing its assets to generate earnings fluctuated over the period.
In 2020, Gentherm Inc had an ROA of 5.84%, indicating that the company generated approximately 5.84 cents of profit for every dollar of assets it had. The following year, in 2021, Gentherm Inc's ROA improved significantly to 9.99%, showcasing a more efficient use of its assets to generate higher returns.
However, in 2022, Gentherm Inc's ROA decreased to 1.97%, suggesting a decline in the company's ability to generate profits from its assets efficiently. The company managed to improve its ROA slightly in 2023 to 3.27%, but it remained below the levels seen in 2021.
By 2024, Gentherm Inc's ROA had risen to 5.21%, indicating a partial recovery in the company's ability to generate returns from its assets. Overall, the fluctuating trend in Gentherm Inc's ROA over the years indicates varying levels of asset efficiency and profitability, highlighting the importance of closely monitoring and managing asset utilization to drive sustainable financial performance.
Peer comparison
Dec 31, 2024