CTS Corporation (CTS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.97 | 0.91 | 1.76 | 1.71 | 1.70 | 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 |
| Cash ratio | 0.97 | 0.91 | 1.76 | 1.71 | 1.70 | 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 |
The current ratio for CTS Corporation has shown a general trend of improvement over the past few years, starting at 3.04 in March 2020 and increasing to 3.41 by June 2024. This indicates that the company's current assets are sufficient to cover its current liabilities, showing a strong liquidity position.
In contrast, the quick ratio, which provides a more stringent measure of liquidity by excluding inventories from current assets, has shown more variability. It started at 1.62 in March 2020, dropped to 0.87 in December 2020, and then fluctuated over the years, with a slight upward trend towards the end of the period.
The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has followed a similar pattern to the quick ratio. It decreased from 1.62 in March 2020 to 0.87 in December 2020 before fluctuating and eventually increasing to 1.76 by June 2024.
Overall, while the current ratio indicates a strong liquidity position for CTS Corporation, the quick and cash ratios show more variability and a need for careful monitoring of the company's ability to meet short-term obligations without relying on inventory.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of CTS Corporation has shown some fluctuations over the period provided. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates a more efficient use of the company's operating capital.
From March 2020 to June 2020, there was a slight increase in the cash conversion cycle from 54.74 days to 57.14 days. However, it decreased to 53.89 days by September 2020, indicating an improvement in efficiency. The cycle then increased to 58.74 days by December 2020, suggesting a slower conversion of resources into cash.
Subsequently, there were fluctuations in the cash conversion cycle over the next few quarters, with values ranging between 55 to 67 days. These variations could be due to changes in the company's inventory management, accounts receivable collection, and accounts payable practices.
Overall, monitoring the cash conversion cycle is crucial for assessing CTS Corporation's efficiency in managing its working capital and cash flows. Analyzing trends in the cycle can provide insights into the company's operational efficiency and financial health.