Gentherm Inc (THRM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 616,947 | 644,722 | 672,273 | 653,806 | 586,331 |
| ROE | 10.53% | 6.26% | 3.64% | 14.29% | 10.18% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $64,947K ÷ $616,947K
= 10.53%
Gentherm Inc's return on equity (ROE) has displayed some variability over the past five years.
Starting at 10.18% as of December 31, 2020, the company's ROE increased to 14.29% by the end of 2021, indicating improved efficiency in generating profits from shareholders' equity. However, there was a significant drop in ROE to 3.64% by the end of 2022, suggesting a decline in the company's ability to generate returns on its equity.
In 2023, Gentherm Inc's ROE showed a moderate recovery, increasing to 6.26%, indicating some stabilization in the company's profitability. By the end of 2024, the ROE improved further to 10.53%, approaching the levels seen in the initial year.
Overall, Gentherm Inc's ROE trend reflects fluctuations in profitability and efficiency in converting shareholders' equity into profits over the period analyzed. It is important for investors and analysts to delve deeper into the company's financial performance and strategic initiatives to understand the factors contributing to these fluctuations in ROE.
Peer comparison
Dec 31, 2024