CTS Corporation (CTS)

Receivables 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
Receivables	US$ in thousands	78,569	90,935	82,191	80,981	78,008
Receivables turnover		7.01	6.45	6.24	5.24	6.01

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $550,422K ÷ $78,569K
= 7.01

The receivables turnover ratio for CTS Corp. has shown a generally increasing trend over the past five years, reflecting the company's ability to efficiently collect payments from its customers.

In 2019, the ratio stood at 6.01, indicating that the company collected its accounts receivable approximately 6 times during the year. This ratio then increased to 5.24 in 2020, suggesting that the company was able to collect its receivables at a faster rate that year.

The trend continued with further improvements in 2021 and 2022, where the receivables turnover ratios were 6.24 and 6.45 respectively. This indicates that the company was able to convert its accounts receivable into cash even more efficiently during those years.

The highest receivables turnover ratio was recorded in 2023 at 7.01, which signifies that the company collected its receivables approximately 7 times during that year. This may indicate that CTS Corp. improved its credit and collection policies, resulting in quicker conversion of credit sales into cash.

Overall, the increasing trend in the receivables turnover ratio for CTS Corp. suggests that the company has been managing its accounts receivable effectively and efficiently over the years.