CTS Corporation (CTS)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.99 | 5.63 | 6.05 | 5.94 | 6.04 | 5.81 | 5.41 | 6.40 | 6.63 | 6.38 | 6.63 | 6.32 | 6.21 | 6.77 | 6.39 | 6.67 | 7.37 | 6.88 | 7.20 | 7.23 |
| Receivables turnover | 7.01 | 6.34 | 6.00 | 5.99 | 6.45 | 5.95 | 5.53 | 5.60 | 6.24 | 6.44 | 6.12 | 5.51 | 5.24 | 5.44 | 6.99 | 6.38 | 6.01 | 5.87 | 5.62 | 5.76 |
| 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 |
| Working capital turnover | 2.48 | 2.46 | 2.63 | 2.70 | 2.75 | 2.82 | 3.36 | 3.01 | 2.93 | 2.92 | 3.07 | 3.21 | 3.31 | 2.47 | 2.23 | 2.40 | 3.34 | 3.28 | 3.10 | 3.28 |
The activity ratios for CTS Corp. provide insight into how effectively the company is managing its resources and operating its business.
1. Inventory turnover: CTS Corp. has been able to effectively manage its inventory levels, with a consistent range of turnover ratios between 5.41 and 6.40 over the past eight quarters. This indicates that the company is efficiently selling its inventory and replenishing it at a steady pace.
2. Receivables turnover: The receivables turnover ratio for CTS Corp. has also been relatively stable, ranging from 5.53 to 7.01 over the same period. This suggests that the company is efficient in collecting payments from its customers and managing its accounts receivable effectively.
3. Payables turnover: CTS Corp. has shown improvement in its payables turnover ratio, with the ratio increasing from 5.60 in Q1 2022 to 8.27 in Q4 2023. This indicates that the company is paying its suppliers more frequently, which can help improve its liquidity position.
4. Working capital turnover: The working capital turnover ratio measures how effectively CTS Corp. is utilizing its working capital to generate sales. The company has shown a declining trend in this ratio, from 3.36 in Q2 2022 to 2.48 in Q4 2023. This may indicate that the company is becoming less efficient in using its working capital to support its operations.
Overall, the activity ratios suggest that CTS Corp. is effectively managing its inventory and receivables, while also improving its payables turnover. However, the declining trend in the working capital turnover ratio may warrant further investigation to understand any potential operational or financial challenges facing the company.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 60.94 | 64.81 | 60.31 | 61.40 | 60.39 | 62.79 | 67.47 | 57.01 | 55.04 | 57.17 | 55.01 | 57.73 | 58.74 | 53.89 | 57.14 | 54.74 | 49.50 | 53.05 | 50.70 | 50.48 |
| Days of sales outstanding (DSO) | days | 52.10 | 57.55 | 60.81 | 60.94 | 56.56 | 61.35 | 65.96 | 65.23 | 58.49 | 56.71 | 59.60 | 66.25 | 69.70 | 67.05 | 52.22 | 57.23 | 60.71 | 62.21 | 64.91 | 63.32 |
| Number of days of payables | days | 44.16 | 49.41 | 51.21 | 51.67 | 51.61 | 64.99 | 63.80 | 65.22 | 61.74 | 55.04 | 53.64 | 64.72 | 64.66 | 60.71 | 42.37 | 56.04 | 56.51 | 56.57 | 59.85 | 62.79 |
CTS Corp.'s activity ratios for inventory management, accounts receivable turnover, and accounts payable turnover reveal valuable insights into the company's operational efficiency.
1. Days of Inventory on Hand (DOH):
- CTS Corp.'s average days of inventory on hand have ranged from around 60 to 65 days over the past two years.
- Lower values indicate better inventory management efficiency, as the company is able to sell its inventory faster.
- The trend shows some variability, with a significant decrease in DOH seen in Q1 2022 followed by fluctuations in subsequent quarters.
2. Days of Sales Outstanding (DSO):
- CTS Corp.'s accounts receivable turnover, as measured by DSO, ranged from approximately 52 to 61 days in the past eight quarters.
- A lower DSO is preferable as it signifies quicker collection of accounts receivable.
- The company has shown some improvement in its DSO in Q4 2023 compared to the previous two quarters, suggesting better management of credit and collections.
3. Number of Days of Payables:
- CTS Corp.'s average number of days of payables has fluctuated between 44 and 65 days over the observed period.
- A longer number of days of payables indicates that the company is taking longer to pay its suppliers, which might suggest cash flow management strategies.
- The company has shown a significant decrease in the number of days of payables in Q4 2023 compared to previous quarters, which could indicate a change in payment terms or vendor relationships.
Overall, analyzing CTS Corp.'s activity ratios provides insights into its inventory management, accounts receivable collection efficiency, and relationship with suppliers. The fluctuations observed in these ratios over time can indicate changes in the company's operational practices and financial performance.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 5.94 | 6.12 | 6.16 | 6.08 | 6.03 | 6.02 | 5.50 | 5.48 | 5.29 | 5.44 | 5.32 | 4.74 | 4.35 | 4.26 | 4.21 | 4.47 | 4.47 | 4.62 | 4.78 | 4.79 |
| Total asset turnover | 0.74 | 0.75 | 0.77 | 0.78 | 0.78 | 0.79 | 0.75 | 0.78 | 0.77 | 0.77 | 0.76 | 0.71 | 0.68 | 0.63 | 0.63 | 0.66 | 0.73 | 0.73 | 0.82 | 0.83 |
CTS Corp.'s long-term activity ratios indicate how effectively the company is utilizing its assets to generate revenue. The fixed asset turnover ratio has been consistently high, ranging from 5.48 to 6.16 over the last eight quarters. This suggests that the company is efficiently using its fixed assets to generate sales, with a slight fluctuation but an overall positive trend.
On the other hand, the total asset turnover ratio has shown some variability, ranging from 0.74 to 0.78. This ratio measures how efficiently the company is generating revenue from all its assets, both fixed and current. While the fluctuations in this ratio are relatively small, it is important to monitor to ensure that the company is effectively utilizing all its assets to generate revenue.
Overall, the high fixed asset turnover ratio indicates that CTS Corp. is effectively using its fixed assets to drive revenue, while the total asset turnover ratio provides a broader perspective on the company's overall asset utilization. Monitoring these ratios over time can help assess the company's long-term efficiency in generating revenue from its assets.