Gentherm Inc (THRM)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 107,015 | 77,439 | 48,307 | 115,006 | 89,217 |
| Long-term debt | US$ in thousands | 220,064 | 222,217 | 232,653 | 36,250 | 189,934 |
| Total stockholders’ equity | US$ in thousands | 616,947 | 644,722 | 672,273 | 653,806 | 586,331 |
| Return on total capital | 12.79% | 8.93% | 5.34% | 16.67% | 11.49% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $107,015K ÷ ($220,064K + $616,947K)
= 12.79%
Gentherm Inc's Return on Total Capital has fluctuated over the period from December 31, 2020, to December 31, 2024. In 2020, the return was 11.49%, showing a moderate level of profitability relative to the capital employed. By the end of 2021, this metric improved significantly to 16.67%, indicating a more efficient use of total capital to generate profits. However, in 2022, there was a notable decline in the return to 5.34%, suggesting potential challenges in capital utilization efficiency.
Subsequently, by December 31, 2023, there was a slight recovery in the Return on Total Capital to 8.93%, although it remained below the peak seen in 2021. Finally, as of December 31, 2024, the return increased to 12.79%, indicating an improvement in capital efficiency and a better return on the total invested capital compared to the previous year.
Overall, fluctuations in Gentherm Inc's Return on Total Capital demonstrate varying levels of profitability and capital utilization efficiency over the years, reflecting the company's ability to generate returns from the capital invested in its operations.
Peer comparison
Dec 31, 2024