CTS Corporation (CTS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 2.45 | 2.44 | 2.60 | 2.48 |
| Quick ratio | 2.50 | 2.43 | 2.33 | 2.29 | 2.22 | 2.02 | 1.72 | 1.92 | 1.96 | 1.97 | 1.94 | 1.73 | 1.65 | 2.19 | 2.65 | 2.38 | 1.84 | 1.81 | 1.98 | 1.88 |
| 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 |
CTS Corp.'s liquidity ratios have shown a consistently positive trend over the last eight quarters, indicating strong liquidity positions.
The current ratio has steadily increased from 2.54 in Q1 2022 to 3.29 in Q4 2023, reflecting the company's ability to meet its short-term obligations with its current assets. This upward trend suggests improved liquidity and asset management efficiency.
Similarly, the quick ratio, which excludes inventory from current assets, has also demonstrated a positive trend, increasing from 2.08 in Q1 2022 to 2.67 in Q4 2023. This indicates that the company has ample liquid assets to cover its immediate liabilities without relying on inventory for liquidity.
The cash ratio, which is the most conservative measure of liquidity, has also shown a favorable trend, rising from 1.26 in Q1 2022 to 1.86 in Q4 2023. This suggests that CTS Corp. has a sufficient level of cash to cover its current liabilities without needing to rely on other current assets.
Overall, the increasing trends in all three liquidity ratios indicate that CTS Corp. has been effectively managing its liquidity position and is well-equipped to meet its short-term financial obligations.
Additional liquidity measure
| 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 conversion cycle | days | 68.88 | 72.95 | 69.90 | 70.68 | 65.33 | 59.15 | 69.63 | 57.02 | 51.78 | 58.83 | 60.97 | 59.26 | 63.79 | 60.23 | 67.00 | 55.92 | 53.70 | 58.69 | 55.77 | 51.01 |
The cash conversion cycle for CTS Corp. has shown fluctuations over the past eight quarters. It ranged from a low of 57.02 days in Q1 2022 to a high of 72.95 days in Q3 2023. This metric measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In analyzing the trend, we observe an increasing trend in the cash conversion cycle in the recent quarters, indicating a potential increase in the time taken for CTS Corp to turn its resources into cash. This could suggest inefficiencies in managing inventory, collecting receivables, or paying suppliers.
The average cash conversion cycle over the eight quarters is approximately 67.79 days. CTS Corp. may benefit from focusing on improving its working capital management processes to reduce this cycle time and free up cash for other investments or operations.