Gentherm Inc (THRM)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	222,217	232,653	36,250	189,934	78,124
Total assets	US$ in thousands	1,234,370	1,239,300	935,343	1,022,840	738,832
Debt-to-assets ratio		0.18	0.19	0.04	0.19	0.11

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $222,217K ÷ $1,234,370K
= 0.18

The debt-to-assets ratio of Gentherm Inc has fluctuated over the past five years. In 2023, the ratio stands at 0.18, indicating that 18% of the company's assets are financed by debt. This represents a slight decrease from the previous year when the ratio was 0.19.

Comparing to 2021 and 2020, where the ratios were 0.04 and 0.19 respectively, it is evident that there was a significant increase from 2021 to 2020, but the company managed to bring the ratio back down in 2023.

The highest ratio recorded in the past five years was in 2020 at 0.19, suggesting a higher level of debt financing relative to its assets. In contrast, the lowest ratio was in 2021 at 0.04, indicating a lower reliance on debt to fund its operations.

Overall, the trend in Gentherm Inc's debt-to-assets ratio reflects fluctuations in its debt management strategy, with the company experiencing both increases and decreases over the period analyzed. This ratio provides insights into the company's financial risk and leverage levels, highlighting its ability to manage its debt obligations in relation to its total assets.