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.