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.