Gentherm Inc (THRM)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	644,722	672,273	653,806	586,331	484,096
Debt-to-capital ratio		0.26	0.26	0.05	0.24	0.14

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $222,217K ÷ ($222,217K + $644,722K)
= 0.26

The debt-to-capital ratio of Gentherm Inc has fluctuated over the past five years. In 2023 and 2022, the ratio remained constant at 0.26, indicating that 26% of the company's capital structure was financed by debt. This level of debt relative to capital has been consistent over the past two years.

In 2021, there was a notable decrease in the debt-to-capital ratio to 0.06, suggesting a significant reduction in the company's reliance on debt as a source of funding. However, in 2020, the ratio increased to 0.25, indicating a return to a higher debt-to-capital level compared to the previous year.

The highest debt-to-capital ratio in the past five years was in 2019 at 0.15, which suggests a moderate level of debt in the capital structure of Gentherm Inc.

Overall, the company has experienced fluctuations in its debt-to-capital ratio, with varying levels of reliance on debt financing over the years. Investors and stakeholders may need to closely monitor these changes to assess the company's financial risk and capital structure strategy.