CTS Corporation (CTS)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 515,771 550,422 586,869 512,925 424,066
Total current assets US$ in thousands 244,277 319,349 325,760 289,089 233,231
Total current liabilities US$ in thousands 97,553 97,039 112,532 114,066 104,932
Working capital turnover 3.52 2.48 2.75 2.93 3.31

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $515,771K ÷ ($244,277K – $97,553K)
= 3.52

CTS Corporation's working capital turnover has shown a declining trend over the past five years. The ratio decreased from 3.31 in December 31, 2020, to 2.93 in December 31, 2021, further dropping to 2.75 in December 31, 2022, and then to 2.48 in December 31, 2023. This downward trajectory indicates that the company is less efficient in utilizing its working capital to generate sales revenue. However, there was a notable improvement in the ratio in December 31, 2024, where it increased to 3.52, suggesting a potential enhancement in working capital management efficiency. Further analysis and comparison with industry benchmarks may provide insights into the effectiveness of CTS Corporation's working capital management strategies.