Gentherm Inc (THRM)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	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	37,506	39,681	23,439	37,347
Total stockholders’ equity	US$ in thousands	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	484,096	451,593	465,281	478,487
ROE		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%	7.75%	8.79%	5.04%	7.81%

December 31, 2023 calculation

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

Gentherm Inc's return on equity (ROE) has shown fluctuations over the past eight quarters. In Q4 2023, the ROE was 6.26%, increasing from 2.73% in Q3 2023. Despite the increase, the ROE remains relatively low compared to previous quarters.

The trend in ROE for Gentherm Inc appears to be somewhat volatile, with Q2 and Q3 of 2022 showing higher ROE figures of 8.48% and 11.02%, respectively. However, there has been a general downward trend in ROE since Q2 2022, with the most recent quarters showing ROE figures below 5%.

It is important for investors to closely monitor these fluctuations in ROE as it indicates the company's profitability relative to shareholder equity. A declining ROE may suggest decreasing profitability or inefficiencies in the utilization of shareholder funds. Further analysis of the company's financial performance and operating activities is recommended to better understand the factors influencing Gentherm Inc's ROE.