Gentherm Inc (THRM)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	220,064	222,217	232,653	36,250	189,934
Total assets	US$ in thousands	1,247,560	1,234,370	1,239,300	935,343	1,022,840
Debt-to-assets ratio		0.18	0.18	0.19	0.04	0.19

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $220,064K ÷ $1,247,560K
= 0.18

The debt-to-assets ratio of Gentherm Inc has shown some fluctuations over the past five years. As of December 31, 2020, the ratio stood at 0.19, indicating that 19% of the company's assets were funded by debt. Subsequently, there was a substantial decrease in the ratio to 0.04 by December 31, 2021, suggesting a lower reliance on debt financing.

However, the ratio rebounded to 0.19 by the end of December 2022, reaching the same level observed in 2020. In the following years, the ratio remained relatively stable, standing at 0.18 as of December 31, 2023, and December 31, 2024. This indicates that around 18% of Gentherm Inc's assets were financed through debt in those years.

Overall, fluctuating debt-to-assets ratios may signify changes in the company's capital structure and financial risk levels. It is essential for investors and stakeholders to closely monitor these variations to assess Gentherm Inc's leverage and financial health.