CTS Corporation (CTS)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	550,422	586,869	512,925	424,066	468,999
Property, plant and equipment	US$ in thousands	92,592	97,300	96,876	97,437	105,038
Fixed asset turnover		5.94	6.03	5.29	4.35	4.47

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $550,422K ÷ $92,592K
= 5.94

Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates better utilization of fixed assets.

The fixed asset turnover for CTS Corp. has shown a fluctuating trend over the past five years. In 2023, the ratio decreased slightly to 5.94 from 6.03 in 2022, but it remains at a relatively high level. This suggests that the company is effectively generating sales revenue relative to its investment in fixed assets.

Compared to 2021 and 2020 where the ratio was 5.29 and 4.35 respectively, the company has shown improvement in utilizing its fixed assets more efficiently in recent years. The upward trend in fixed asset turnover indicates a positive development in the company's operational performance.

Overall, the increasing trend in CTS Corp.'s fixed asset turnover over the past five years reflects improving efficiency in utilizing fixed assets to generate sales revenue. This indicates effective management of fixed assets, which is a positive sign for the company's operational performance and overall financial health.