CTS Corporation (CTS)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	326,621	359,563	376,331	328,306	285,003
Inventory	US$ in thousands	53,578	60,031	62,260	49,506	45,870
Inventory turnover		6.10	5.99	6.04	6.63	6.21

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $326,621K ÷ $53,578K
= 6.10

The inventory turnover ratio for CTS Corporation has shown relatively stable performance over the past five years. The company's inventory turnover ranged from 5.99 times to 6.63 times during this period, indicating that, on average, CTS Corporation has been able to sell and replace its inventory multiple times a year.

A higher inventory turnover ratio generally indicates that a company is efficiently managing its inventory by quickly selling its products. In the case of CTS Corporation, the ratio has stayed consistently above 6, suggesting effective inventory management practices.

It is noteworthy that despite a slight dip in 2023 to 5.99, the inventory turnover ratio bounced back in 2024 to 6.10, indicating a potential improvement in the efficiency of inventory management. Overall, the stable and relatively healthy inventory turnover ratios reflect favorable inventory management practices at CTS Corporation.