Gentherm Inc (THRM)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 77,439 | 48,307 | 115,006 | 89,217 | 84,260 |
| Long-term debt | US$ in thousands | 222,217 | 232,653 | 36,250 | 189,934 | 78,124 |
| Total stockholders’ equity | US$ in thousands | 644,722 | 672,273 | 653,806 | 586,331 | 484,096 |
| Return on total capital | 8.93% | 5.34% | 16.67% | 11.49% | 14.99% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $77,439K ÷ ($222,217K + $644,722K)
= 8.93%
Gentherm Inc's return on total capital has shown variability over the past five years. The return on total capital was 11.72% at the end of 2023, which indicates that for every dollar of total capital employed in the business, the company generated a return of 11.72 cents. This marks an improvement compared to the prior year, where the return was 6.09%.
In 2021, Gentherm Inc achieved a return on total capital of 17.16%, reflecting a strong performance in efficiently utilizing its total capital to generate profits. This figure was slightly lower than the return on total capital in 2019, which stood at 17.56%. The return on total capital for 2020 was 12.20%, indicating a moderate performance in capital utilization during that period.
Overall, Gentherm Inc's return on total capital has demonstrated some fluctuations in recent years, with 2021 standing out as a particularly strong year in terms of capital efficiency. It is important for the company to continue monitoring and improving its return on total capital to ensure sustainable and profitable operations.
Peer comparison
Dec 31, 2023