CTS Corporation (CTS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.68% | 35.87% | 35.99% | 32.79% | 33.60% |
| Operating profit margin | 13.64% | 15.85% | 14.91% | 10.64% | 11.47% |
| Pretax margin | 13.65% | 13.76% | -11.87% | 10.72% | 10.72% |
| Net profit margin | 11.00% | 10.15% | -8.16% | 8.18% | 7.71% |
CTS Corp.'s profitability ratios indicate a fluctuating trend over the past five years. The gross profit margin has generally remained above 30%, reflecting the company's ability to generate profits after accounting for the cost of goods sold. However, there has been a slight decline in recent years, with a decrease from 35.87% in 2022 to 34.68% in 2023.
The operating profit margin, which shows the company's profitability from core operations, has also shown variability, ranging from 11.07% in 2020 to 16.17% in 2022. In 2023, it decreased to 14.92%, indicating a slightly lower efficiency in managing operating expenses compared to the prior year.
The pretax margin, indicating the company's profitability before accounting for taxes, presents a mixed performance, with a significant negative performance in 2021 (-11.87%) but positive trends in other years. The pretax margin in 2023 stood at 13.65%, showcasing a strong recovery from the negative performance in 2021.
The net profit margin, which signifies the company's profitability after all expenses have been deducted, has experienced fluctuations as well. Despite a negative performance in 2021, with a net loss of -8.16%, CTS Corp. managed to improve its net profit margins in the subsequent years. In 2023, the net profit margin reached 11.00%, reflecting a positive trend in overall profitability.
Overall, while CTS Corp. has faced some challenges in maintaining consistent profitability ratios, the company has shown resilience in adapting to market conditions and improving its profitability in recent years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.13% | 12.43% | 11.51% | 7.21% | 8.36% |
| Return on assets (ROA) | 8.17% | 7.96% | -6.30% | 5.54% | 5.62% |
| Return on total capital | 13.21% | 14.06% | -11.44% | 10.19% | 10.48% |
| Return on equity (ROE) | 11.49% | 11.77% | -9.03% | 8.19% | 8.92% |
CTS Corp. has shown a consistent positive trend in its profitability ratios over the past five years.
1. Operating return on assets (Operating ROA) has been relatively stable, ranging from 7.50% in 2020 to 12.68% in 2022, and stood at 11.08% in 2023. This ratio indicates that CTS has been efficient in generating profits from its assets used in operations.
2. Return on assets (ROA) has also generally improved, varying from -6.30% in 2021 to a positive 8.17% in 2023. This ratio demonstrates that the company has been increasingly effective in utilizing its total assets to generate profits, with a notable turnaround from negative to positive returns.
3. Return on total capital has shown an upward trend, with values ranging from 9.82% in 2020 to 16.09% in 2022, and then settling at 13.82% in 2023. This metric indicates how efficiently the company is generating returns from the total capital employed in the business.
4. Return on equity (ROE) has depicted a similar positive trajectory, fluctuating from -9.03% in 2021 to 11.77% in 2022, reaching 11.49% in 2023. ROE highlights the effectiveness of utilizing shareholders' equity to generate profits.
Overall, the upward trend in profitability ratios, especially the turnaround from negative to positive returns in certain years, reflects improved operational efficiency and financial performance for CTS Corp.