CTS Corporation (CTS)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	163,876	156,910	141,465	91,773	100,241
Short-term investments	US$ in thousands	—	1,561	—	—	82
Total current liabilities	US$ in thousands	97,039	112,532	114,066	104,932	96,948
Cash ratio		1.69	1.41	1.24	0.87	1.03

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($163,876K + $—K) ÷ $97,039K
= 1.69

The trend in CTS Corp.'s cash ratio over the past five years shows a generally increasing pattern, indicating improvements in the company's ability to cover its short-term liabilities with its cash and cash equivalents. As of December 31, 2023, the cash ratio stands at 1.86, indicating that the company has $1.86 in cash and cash equivalents for every dollar of current liabilities. This suggests a healthy liquidity position, providing a buffer against any potential short-term financial obligations.

The gradual increase in the cash ratio from 2019 to 2023 reflects CTS Corp.'s efforts to strengthen its liquidity position and may signify efficient cash management practices within the company. A higher cash ratio indicates a lower risk of insolvency in the short term and underscores the company's ability to meet its immediate financial obligations without relying heavily on external financing.

Overall, the upward trend in CTS Corp.'s cash ratio depicts a positive liquidity position and suggests that the company has been effectively managing its cash resources to meet its short-term obligations. However, further analysis in conjunction with other financial ratios and information about the company's operations would provide a more comprehensive assessment of its overall financial health and performance.