CTS Corporation (CTS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.67% | 34.68% | 35.87% | 35.99% | 32.79% |
| Operating profit margin | 14.11% | 13.64% | 9.39% | 15.24% | 5.64% |
| Pretax margin | 13.81% | 13.65% | 13.76% | -11.87% | 10.72% |
| Net profit margin | 11.27% | 11.00% | 10.15% | -8.16% | 8.18% |
CTS Corporation's profitability ratios have shown some fluctuations over the past five years.
1. Gross Profit Margin:
- The gross profit margin has been relatively stable, ranging from 32.79% in 2020 to 36.67% in 2024.
- This indicates the company's ability to manage production costs and generate profits on sales.
2. Operating Profit Margin:
- There was a significant increase in the operating profit margin from 5.64% in 2020 to 15.24% in 2021, followed by fluctuations in subsequent years.
- The company's operational efficiency improved in 2021 but varied in the following years, possibly due to changes in expenses or revenues.
3. Pretax Margin:
- After a negative pre-tax margin in 2021, the company recovered to positive margins ranging from 10.72% to 13.81% in the years following.
- This indicates that the company was able to control its operating expenses and generate income before taxes.
4. Net Profit Margin:
- Similarly, the net profit margin was negative in 2021 but turned positive in subsequent years, with values ranging from 8.18% to 11.27%.
- This shows that CTS Corporation was able to improve its profitability after a challenging year.
Overall, the company's profitability ratios demonstrate a mix of stability and fluctuations, with a trend towards improvement in the later years. Management should continue monitoring and optimizing costs to sustain and enhance profitability levels.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.50% | 10.13% | 7.36% | 11.76% | 3.82% |
| Return on assets (ROA) | 7.59% | 8.17% | 7.96% | -6.30% | 5.54% |
| Return on total capital | 7.41% | 14.25% | 16.49% | -12.84% | 10.69% |
| Return on equity (ROE) | 5.71% | 11.49% | 11.77% | -9.03% | 8.19% |
Based on the provided data for CTS Corporation, we observe variations in profitability ratios over the years:
1. Operating return on assets (Operating ROA) has shown an improvement from 3.82% in December 2020 to 11.76% in December 2021, followed by a decline to 7.36% in December 2022. Subsequently, it increased to 10.13% in December 2023 and slightly decreased to 9.50% in December 2024.
2. Return on assets (ROA) reflects a negative performance in December 2021 with -6.30%, while the ratios for the other years are positive, ranging from 5.54% in December 2020 to 8.17% in December 2023.
3. Return on total capital showcases a negative return in December 2021 at -12.84%, followed by an increase to 16.49% in December 2022. The ratio then slightly declined to 7.41% by December 2024.
4. Return on equity (ROE) was negative in December 2021 at -9.03%, while positive figures were reported in the other years, ranging from 5.71% in December 2024 to 11.77% in December 2022.
Overall, CTS Corporation's profitability ratios exhibit fluctuations over the years, with some years showing significant improvements and others experiencing declines. Additionally, the company's return on assets and return on equity metrics indicate variability in how effectively the company is utilizing its assets and equity to generate profits for its shareholders.