CTS Corporation (CTS)

Current ratio

		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
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
Current ratio		2.50	2.46	3.41	3.32	3.29	3.23	3.08	3.05	2.89	2.68	2.41	2.54	2.53	2.64	2.57	2.31	2.22	2.77	3.40	3.04

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $244,277K ÷ $97,553K
= 2.50

CTS Corporation's current ratio has demonstrated some fluctuation over the past several quarters. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, was at a healthy level of 3.04 as of March 31, 2020. It then improved to 3.40 by June 30, 2020, indicating a strengthening liquidity position.

However, the current ratio declined in the following quarters, reaching a low of 2.22 by December 31, 2020. This may have raised concerns about the company's ability to meet its short-term obligations using its current assets alone.

Subsequently, the current ratio showed some recovery, rising to 3.29 by December 31, 2023, and peaking at 3.41 by June 30, 2024. These higher ratios suggest an improved ability to cover short-term liabilities with current assets.

The current ratio dipped to 2.46 by September 30, 2024, which may indicate a potential temporary liquidity strain. It is important for stakeholders to monitor the trend of the current ratio over time to assess CTS Corporation's short-term liquidity position effectively.