Gentherm Inc (THRM)

Financial leverage 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
Total assets	US$ in thousands	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	738,832	737,671	751,910	763,046
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
Financial leverage ratio		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	1.53	1.63	1.62	1.59

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,234,370K ÷ $644,722K
= 1.91

The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. Gentherm Inc's financial leverage ratio has shown some fluctuations over the past few quarters. In Q4 2023, the ratio stands at 1.91, indicating that the company's debt levels are higher relative to its equity compared to the previous quarter.

The trend in the financial leverage ratio has been relatively stable around the 1.86 to 1.99 range in recent quarters, except for a notable increase to 1.99 in Q3 2022 and a decrease to 1.47 in Q2 2022. A higher financial leverage ratio suggests a higher proportion of debt in the company's capital structure, which can increase financial risk but also potentially enhance returns for shareholders through leverage.

Overall, Gentherm Inc's financial leverage ratio appears to have been well-managed within a reasonable range, but it is important for the company to monitor and assess its debt levels carefully to maintain a healthy balance between debt and equity financing.