Gentherm Inc (THRM)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	64,947	67,713	67,592	47,165	40,343	18,051	12,034	20,657	24,441	48,694	54,553	72,272	93,434	107,379	115,839	80,726	59,690	36,151	27,892	40,965
Total stockholders’ equity	US$ in thousands	616,947	660,709	640,304	647,059	644,722	660,052	670,560	680,318	672,273	624,089	643,195	655,787	653,806	655,480	645,210	612,758	586,331	511,796	469,321	470,381
ROE		10.53%	10.25%	10.56%	7.29%	6.26%	2.73%	1.79%	3.04%	3.64%	7.80%	8.48%	11.02%	14.29%	16.38%	17.95%	13.17%	10.18%	7.06%	5.94%	8.71%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $64,947K ÷ $616,947K
= 10.53%

Gentherm Inc's return on equity (ROE) has exhibited fluctuations over the periods under review. The ROE ranged from a low of 1.79% on June 30, 2023, to a peak of 17.95% on June 30, 2021. It is evident that the company experienced a general upward trend in ROE from mid-2020 to mid-2021, reaching its highest point. Subsequently, the ROE showed some volatility but generally remained above single digits until the end of 2024.

Notably, there was a decline in ROE towards the end of the analysis period, with a decrease from 10.56% on June 30, 2024, to 10.25% on September 30, 2024, followed by a slight increase to 10.53% on December 31, 2024. This declining trend towards the end of 2024 may warrant further investigation to understand the factors contributing to the decrease in ROE during this period.

Overall, while Gentherm Inc demonstrated variability in its ROE over the analyzed quarters, management should continue monitoring this metric to ensure sustainable profitability and efficient utilization of shareholder equity.