Gentherm Inc (THRM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,247,560 | 1,234,370 | 1,239,300 | 935,343 | 1,022,840 |
| Total stockholders’ equity | US$ in thousands | 616,947 | 644,722 | 672,273 | 653,806 | 586,331 |
| Financial leverage ratio | 2.02 | 1.91 | 1.84 | 1.43 | 1.74 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,247,560K ÷ $616,947K
= 2.02
The financial leverage ratio, which shows the extent to which a company relies on debt financing versus equity, for Gentherm Inc has been fluctuating over the past five years.
As of December 31, 2020, the financial leverage ratio was 1.74, indicating that the company had $1.74 in debt for every $1 of equity.
In the following year, the ratio decreased to 1.43, suggesting a lower reliance on debt compared to equity. However, by December 31, 2022, the ratio increased to 1.84, indicating an uptick in debt relative to equity.
By the end of December 31, 2023, the financial leverage ratio further increased to 1.91, signaling a continued reliance on debt to finance operations.
The most recent data as of December 31, 2024, shows a ratio of 2.02, which means that the company had $2.02 in debt for every $1 of equity.
Overall, the trend in the financial leverage ratio for Gentherm Inc over the past five years suggests fluctuations in the company's debt and equity structure, with the ratio peaking in 2024. Investors and stakeholders may want to monitor this trend to assess the company's financial risk and stability.
Peer comparison
Dec 31, 2024