CTS Corporation (CTS)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 59.94 | 63.49 | 56.32 | 60.98 | 60.94 | 64.81 | 60.31 | 61.40 | 60.39 | 62.79 | 67.47 | 57.01 | 55.04 | 57.17 | 55.01 | 57.73 | 58.74 | 53.89 | 57.14 | 54.74 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 59.94 | 63.49 | 56.32 | 60.98 | 60.94 | 64.81 | 60.31 | 61.40 | 60.39 | 62.79 | 67.47 | 57.01 | 55.04 | 57.17 | 55.01 | 57.73 | 58.74 | 53.89 | 57.14 | 54.74 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.94 + — – —
= 59.94
The cash conversion cycle of CTS Corporation has shown fluctuations over the past several quarters. The cycle measures the time it takes for a company to convert its investments in inventory back to cash, indicating efficiency in managing its working capital.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 53.89 days to a high of 67.47 days. A decreasing trend was observed initially from 2020 to 2021, reaching a low of 55.01 days in June 30, 2021. However, the cycle increased notably in the following quarters, peaking at 67.47 days by June 30, 2022.
Subsequently, the cash conversion cycle fluctuated around the 60-day mark, indicating that CTS Corporation may have been facing challenges in efficiently managing its working capital during this period. The company experienced some improvements in the latter part of 2024, with the cycle decreasing to 59.94 days by December 31, 2024.
Overall, CTS Corporation should focus on optimizing its inventory, accounts receivable, and accounts payable management to shorten the cash conversion cycle and improve its liquidity position and operational efficiency. Monitoring and actively managing this cycle can help the company enhance its cash flow and financial performance in the long run.
Peer comparison
Dec 31, 2024