CTS Corporation (CTS)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	163,876	160,112	150,878	143,537	156,910	147,908	98,739	126,118	141,465	128,527	117,397	103,392	91,773	131,740	145,981	150,955	100,241	101,199	105,578	100,708
Short-term investments	US$ in thousands	—	1,532	1,629	1,451	1,561	1,258	679	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	96,948	100,551	96,315	97,504
Cash ratio		1.69	1.56	1.42	1.37	1.41	1.22	0.86	1.10	1.24	1.22	1.15	0.97	0.87	1.39	1.88	1.62	1.03	1.01	1.10	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 cash ratio of CTS Corp. has shown a generally increasing trend over the past eight quarters, indicating an improvement in the company's ability to cover its short-term obligations with cash. In Q4 2023, the cash ratio reached 1.86, the highest level in the provided data, suggesting that the company has a strong cash position relative to its current liabilities.

Comparing Q4 2023 to the previous quarter, there was a notable increase from 1.73 to 1.86, indicating better liquidity management during this period. This improvement is also evident when looking back at Q1 2022, where the cash ratio was at its lowest point of 1.00. Since then, CTS Corp. has steadily enhanced its cash position relative to its short-term obligations.

Overall, the increasing trend in the cash ratio demonstrates CTS Corp.'s strengthening liquidity position and ability to meet its immediate financial commitments using available cash resources. This trend is a positive indicator of the company's financial health, providing reassurance to investors and creditors.