Gentherm Inc (THRM)

Financial leverage 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
Total assets US$ in thousands 1,247,560 1,298,180 1,240,550 1,252,710 1,234,370 1,225,600 1,244,050 1,268,750 1,239,300 1,241,330 947,046 967,113 935,343 943,978 933,873 932,454 1,022,840 921,447 823,370 893,370
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
Financial leverage ratio 2.02 1.96 1.94 1.94 1.91 1.86 1.86 1.86 1.84 1.99 1.47 1.47 1.43 1.44 1.45 1.52 1.74 1.80 1.75 1.90

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,247,560K ÷ $616,947K
= 2.02

The financial leverage ratio of Gentherm Inc has shown some fluctuations over the years, ranging from 1.43 to 2.02. A higher financial leverage ratio generally indicates that the company is more reliant on debt to finance its operations and growth.

Looking at the trend, the financial leverage ratio increased steadily from March 2020 to June 2022, reaching a peak of 2.02 by December 2024. This may suggest that Gentherm Inc took on more debt during this period, potentially to fund expansion or investment activities.

However, from June 2022 to December 2024, there was some fluctuation in the financial leverage ratio, showing a slight decrease followed by an increase again. This indicates some variability in the company's capital structure and debt levels during this period.

Overall, it is essential for investors and stakeholders to monitor Gentherm Inc's financial leverage ratio closely, as high levels of leverage can increase financial risk and impact the company's ability to meet its debt obligations in the long term.