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.
Peer comparison
Dec 31, 2024