CTS Corporation (CTS)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	163,876	156,910	141,465	91,773	100,241
Short-term investments	US$ in thousands	—	1,561	—	—	82
Receivables	US$ in thousands	78,569	90,935	82,191	80,981	78,008
Total current liabilities	US$ in thousands	97,039	112,532	114,066	104,932	96,948
Quick ratio		2.50	2.22	1.96	1.65	1.84

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($163,876K + $—K + $78,569K) ÷ $97,039K
= 2.50

The quick ratio of CTS Corp. has shown a generally positive trend over the past five years, indicating an improvement in the company's short-term liquidity position. The ratio has increased from 2.01 in 2019 to 2.67 in 2023, suggesting that the company has become more capable of meeting its short-term obligations using its most liquid assets.

A quick ratio above 1 indicates that CTS Corp. possesses more than enough liquid assets to cover its short-term liabilities. The company's quick ratio has consistently stayed well above 1 in each of the past five years, showcasing strong liquidity management.

The increasing trend in the quick ratio signifies that CTS Corp. has been effectively managing its current assets as compared to its current liabilities over the years. This may indicate a favorable working capital position and a reduced risk of financial distress due to potential short-term obligations.

Overall, the upward trend in the quick ratio suggests that CTS Corp. has been successful in maintaining a healthy liquidity position, which is vital for sustaining its operations and withstanding economic uncertainties.