Gentherm Inc (THRM)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	40,343	24,441	93,434	59,690	37,506
Total stockholders’ equity	US$ in thousands	644,722	672,273	653,806	586,331	484,096
ROE		6.26%	3.64%	14.29%	10.18%	7.75%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $40,343K ÷ $644,722K
= 6.26%

Gentherm Inc's return on equity (ROE) has exhibited fluctuations over the past five years. In 2023, the ROE stood at 6.26%, representing a slight increase from the previous year's 3.64%. However, compared to the higher levels seen in 2021 and 2020 at 14.29% and 10.18% respectively, the 2023 ROE appears relatively subdued. The company experienced a slight decline in ROE from 2019 to 2020 but managed to achieve a significant improvement in 2021.

Overall, the ROE trend for Gentherm Inc indicates some variability in the company's ability to generate profits relative to its shareholders' equity over the years. It would be beneficial to delve deeper into the underlying factors driving these fluctuations to gain a more comprehensive understanding of the company's financial performance and prospects.