CTS Corporation (CTS)
Working capital turnover
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 515,701 | 512,960 | 515,088 | 530,178 | 550,422 | 568,009 | 585,368 | 585,168 | 586,869 | 577,119 | 547,590 | 532,193 | 512,925 | 503,412 | 494,807 | 449,419 | 424,067 | 416,089 | 417,963 | 454,450 |
Total current assets | US$ in thousands | 244,277 | 255,561 | 314,862 | 318,218 | 319,349 | 334,324 | 329,877 | 322,644 | 325,760 | 326,397 | 278,550 | 292,045 | 289,089 | 277,449 | 263,344 | 246,636 | 233,231 | 263,683 | 264,795 | 282,978 |
Total current liabilities | US$ in thousands | 97,553 | 103,799 | 92,447 | 95,948 | 97,039 | 103,426 | 107,182 | 105,776 | 112,532 | 121,939 | 115,376 | 115,040 | 114,066 | 105,072 | 102,311 | 106,710 | 104,932 | 95,119 | 77,771 | 93,238 |
Working capital turnover | 3.51 | 3.38 | 2.32 | 2.39 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $515,701K ÷ ($244,277K – $97,553K)
= 3.51
The working capital turnover ratio for CTS Corporation has exhibited fluctuations over the period under review, ranging from a low of 2.23 in June 30, 2020, to a high of 3.51 in December 31, 2024. This ratio measures the efficiency with which the company is utilizing its working capital to generate revenue, showing how effectively the firm is managing its current assets and liabilities. Generally, a higher turnover ratio indicates better efficiency in using working capital to support sales activities.
In analyzing CTS Corporation's working capital turnover, we observe that there have been both increases and decreases in the ratio over the years. Noteworthy improvements can be seen in the latter half of the period, with the ratio trending upwards from September 30, 2022, to December 31, 2024, reaching its peak at 3.51. This suggests that the company has been able to generate more revenue relative to its investment in working capital during this time frame.
However, it is important to note the slight decline in the ratio towards the end of the period, dropping from 3.51 in December 31, 2024, to 2.39 in March 31, 2024. This decrease may indicate a potential inefficiency in utilizing working capital in generating sales during that quarter.
Overall, a thorough analysis of the working capital turnover ratio for CTS Corporation provides insights into the company's operational efficiency and financial management practices, highlighting periods of improvement and areas that may require further attention to optimize working capital utilization.
Peer comparison
Dec 31, 2024