Gentherm Inc (THRM)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	616,947	644,722	672,273	653,806	586,331
Debt-to-equity ratio		0.36	0.34	0.35	0.06	0.32

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $220,064K ÷ $616,947K
= 0.36

The debt-to-equity ratio of Gentherm Inc has shown some fluctuations over the past five years. As of December 31, 2020, the ratio stood at 0.32, indicating that the company had a moderate level of debt relative to its equity. However, by the end of 2021, the ratio dropped significantly to 0.06, suggesting a substantial decrease in the company's debt relative to its equity.

In the following years, there was a slight increase in the debt-to-equity ratio, reaching 0.35 by December 31, 2022, 0.34 by December 31, 2023, and 0.36 by December 31, 2024. These values indicate a moderate level of debt compared to equity, with a slight upward trend in recent years.

Overall, the debt-to-equity ratio of Gentherm Inc has fluctuated within a relatively low to moderate range over the past five years, suggesting that the company has maintained a balanced mix of debt and equity in its capital structure.