CTS Corporation (CTS)

Short-term

Turnover ratios

CTS Corporation's activity ratios provide insights into how efficiently the company is managing its assets to generate sales.

1. Inventory Turnover:
- CTS Corporation's inventory turnover has remained relatively stable over the years, ranging from 5.99 to 6.63 times. This indicates that the company is effectively managing its inventory levels and quickly converting inventory into sales. A higher turnover ratio generally suggests efficient inventory management.

2. Receivables Turnover:
- The data shows that CTS Corporation did not provide information on its receivables turnover for the years under review. Receivables turnover measures how efficiently the company collects outstanding receivables from customers and converts them into cash. Absence of data makes it difficult to assess the effectiveness of the company in managing its receivables.

3. Payables Turnover:
- Similar to receivables turnover, CTS Corporation did not disclose its payables turnover figures during the years in question. Payables turnover ratio evaluates how efficiently the company is paying its suppliers for goods and services. Without this information, it is unclear how quickly the company is settling its payables.

4. Working Capital Turnover:
- CTS Corporation's working capital turnover has shown fluctuation over the years, from 2.48 to 3.52 times. A higher working capital turnover ratio indicates that the company is effectively utilizing its working capital to generate sales revenue. The company's ability to generate sales relative to its working capital has varied, suggesting changes in operational efficiency.

Overall, CTS Corporation's inventory turnover reflects efficient management of inventory levels, while the absence of data on receivables and payables turnover limits a comprehensive assessment of the company's efficiency in managing receivables and payables. The fluctuation in working capital turnover underscores variations in how effectively the company is utilizing its working capital to drive sales.

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Average number of days

The Days of Inventory on Hand (DOH) for CTS Corporation decreased from 58.75 days in December 2020 to 55.04 days in December 2021, before increasing to 60.39 days in December 2022, 60.94 days in December 2023, and then slightly dropping to 59.87 days in December 2024. This indicates that the company was able to manage its inventory efficiently in 2021, but faced challenges in 2022 and 2023 before improving slightly in 2024.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data is not available in the provided information, which limits a comprehensive analysis of CTS Corporation's activity ratios. Additional data on DSO and payables turnover would be necessary to evaluate the company's efficiency in collecting receivables and managing payables effectively.

In conclusion, based on the DOH trend, CTS Corporation has showcased varying levels of efficiency in managing its inventory over the years. Further information on DSO and payables turnover would provide a more holistic view of the company's overall activity ratios.

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Long-term

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. In the case of CTS Corporation, the fixed asset turnover ratio has shown a relatively stable trend over the past few years, with values ranging from 4.33 to 4.89. This suggests that the company has been effectively utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio indicates how efficiently a company generates sales from all its assets, both fixed and current. CTS Corporation's total asset turnover ratio has shown some fluctuations, with values ranging from 0.67 to 0.78. While the ratio has varied slightly, it remains within a relatively close range, indicating that the company is effectively generating revenue from its total assets.

Overall, based on the analysis of CTS Corporation's long-term activity ratios, it appears that the company has been efficient in using its fixed assets to generate sales and has also been effective in generating revenue from its total assets over the past few years.