Gentherm Inc (THRM)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	616,947	660,709	640,304	647,059	644,722	660,052	670,560	680,318	672,273	624,089	643,195	655,787	653,806	655,480	645,210	612,758	586,331	511,796	469,321	470,381
Debt-to-capital ratio		0.26	0.25	0.26	0.26	0.26	0.24	0.24	0.25	0.26	0.27	0.05	0.05	0.05	0.05	0.07	0.09	0.24	0.27	0.30	0.33

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $220,064K ÷ ($220,064K + $616,947K)
= 0.26

The debt-to-capital ratio of Gentherm Inc has shown a declining trend over the past few years, indicating a decreasing proportion of debt in its capital structure. From March 31, 2020, with a ratio of 0.33, the company has steadily reduced its reliance on debt funding, reaching a ratio of 0.05 by December 31, 2021. This suggests that Gentherm Inc has been effectively managing its debt levels relative to its total capital.

However, there was a notable increase in the debt-to-capital ratio in the third quarter of 2022, jumping back to 0.27, before trending downwards again. From December 31, 2023, the ratio fluctuated slightly but mostly remained stable between 0.24 and 0.26 up to December 31, 2024.

Overall, the company's debt-to-capital ratio indicates a prudent approach towards managing its capital structure, with a focus on maintaining a healthy balance between debt and equity financing.