CTS Corporation (CTS)

Quick 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	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	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	78,569	89,556	97,519	97,707	90,935	97,004	98,949	95,107	82,191	78,210	80,795	81,571	80,981	76,431	59,798	71,250	78,008	80,789	84,876	82,326
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
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

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 eight quarters, indicating a strong ability to meet short-term obligations with liquid assets. The quick ratio has consistently been above 1, highlighting the company's robust liquidity position.

In the most recent quarter (Q4 2023), the quick ratio stood at 2.67, which was higher than the quick ratios of the preceding quarters. This suggests an improvement in the company's ability to cover its current liabilities with its quick assets.

The quick ratio fluctuated within a range of 1.86 to 2.67 over the past two years. The lowest quick ratio was observed in Q3 2022 at 1.86, indicating a lower level of liquidity compared to other quarters. However, the company's liquidity position strengthened in subsequent quarters, with the quick ratio consistently trending upwards.

Overall, the consistent increase in the quick ratio reflects CTS Corp.'s effective management of its current assets and liabilities, which is essential for ensuring liquidity and financial stability in the short term. It indicates that the company has a sufficient amount of liquid assets to cover its short-term obligations and suggests a reduced risk of financial distress.