CTS Corporation (CTS)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	359,563	368,210	378,624	377,318	376,331	368,914	347,069	335,824	328,305	324,772	324,923	300,664	285,004	281,017	282,740	304,590	311,424	312,512	310,695	307,423
Payables	US$ in thousands	43,499	49,848	53,119	53,410	53,211	65,687	60,662	60,010	55,537	48,976	47,753	53,315	50,489	46,739	32,820	46,766	48,219	48,434	50,942	52,884
Payables turnover		8.27	7.39	7.13	7.06	7.07	5.62	5.72	5.60	5.91	6.63	6.80	5.64	5.64	6.01	8.61	6.51	6.46	6.45	6.10	5.81

December 31, 2023 calculation

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

The payables turnover ratio for CTS Corp. has been fluctuating over the past eight quarters, ranging from a low of 5.60 in Q1 2022 to a high of 8.27 in Q4 2023. Overall, the trend in payables turnover has shown an increasing pattern, indicating that the company is becoming more efficient in paying its suppliers over time. This could be a positive sign of effective management of payables and cash flow within the company. As a result, the company may be improving its relationships with suppliers and potentially negotiating better payment terms. Additionally, the increasing payables turnover ratio may reflect the company's efforts to optimize working capital management and enhance overall financial performance.