Gentherm Inc (THRM)

Debt-to-equity ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	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	78,124	97,123	104,393	97,604
Total stockholders’ equity	US$ in thousands	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	484,096	451,593	465,281	478,487
Debt-to-equity ratio		0.34	0.31	0.32	0.34	0.35	0.37	0.05	0.06	0.06	0.06	0.07	0.10	0.32	0.38	0.42	0.49	0.16	0.22	0.22	0.20

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $222,217K ÷ $644,722K
= 0.34

Gentherm Inc's debt-to-equity ratio has shown relative stability over the past eight quarters, ranging from 0.32 to 0.38. The ratio peaked at 0.38 in Q3 2022 and has since trended downwards, reaching its lowest point of 0.06 in Q2 and Q1 2022. This significant decrease in Q2 and Q1 2022 may indicate a strategic initiative to reduce debt levels or a capital restructuring event. However, the ratio rebounded slightly in subsequent quarters.

A debt-to-equity ratio of less than 1 typically indicates that a company relies more on equity financing than debt financing, which can be perceived as lower financial risk. Gentherm Inc's ratios are consistently below 1, implying a conservative capital structure. Investors and stakeholders may view this positively as it suggests the company has a lower reliance on debt to finance its operations and expansion. Further monitoring of the ratio in future periods will be important to assess the company's ongoing debt management strategies and financial health.