CTS Corporation (CTS)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	359,563	376,331	328,306	285,003	311,424
Payables	US$ in thousands	43,499	53,211	55,537	50,489	48,219
Payables turnover		8.27	7.07	5.91	5.64	6.46

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $359,563K ÷ $43,499K
= 8.27

The payables turnover of CTS Corp. has shown a consistent increasing trend over the past five years, indicating a more efficient management of its accounts payable.

In particular, the payables turnover has improved from 6.46 in 2019 to 8.27 in 2023, showcasing an enhanced ability to convert accounts payable into cash or reduce the average time taken to pay off suppliers.

This increasing trend suggests that CTS Corp. has been able to effectively manage its supplier relationships and payment terms, potentially negotiating better terms with suppliers or streamlining its payment processes. This efficiency in managing accounts payable can contribute to improved working capital management and overall financial health of the company.

Overall, the rising payables turnover ratio reflects positively on CTS Corp.'s operational efficiency and liquidity management during the period under review.