Gentherm Inc (THRM)

Debt-to-assets ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	220,064	222,104	222,134	222,173	222,217	207,302	217,441	232,558	232,653	232,000	35,000	36,250	36,250	37,500	45,794	59,319	189,934	193,061	198,099	231,667
Total assets	US$ in thousands	1,247,560	1,298,180	1,240,550	1,252,710	1,234,370	1,225,600	1,244,050	1,268,750	1,239,300	1,241,330	947,046	967,113	935,343	943,978	933,873	932,454	1,022,840	921,447	823,370	893,370
Debt-to-assets ratio		0.18	0.17	0.18	0.18	0.18	0.17	0.17	0.18	0.19	0.19	0.04	0.04	0.04	0.04	0.05	0.06	0.19	0.21	0.24	0.26

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 for Gentherm Inc has shown a decreasing trend over the past few years, indicating a stronger financial position in terms of debt management. The ratio declined from 0.26 as of March 31, 2020, to 0.18 as of December 31, 2024. This suggests that the company has been reducing its debt relative to its total assets, which can be a positive sign for investors and creditors. The ratio dipped substantially in the first half of 2021 and has since maintained a stable range between 0.04 and 0.19, with slight fluctuations.

Overall, a decreasing debt-to-assets ratio is often viewed positively by stakeholders as it indicates a lower reliance on debt to finance operations and signifies a healthier balance sheet structure. However, it is essential to consider other financial metrics and factors in conjunction with this ratio to obtain a comprehensive assessment of Gentherm Inc's financial health and performance.