CTS Corporation (CTS)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	189,150	190,859	210,538	184,619	139,063
Revenue	US$ in thousands	515,771	550,422	586,869	512,925	424,066
Gross profit margin		36.67%	34.68%	35.87%	35.99%	32.79%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $189,150K ÷ $515,771K
= 36.67%

Based on the provided data, CTS Corporation's gross profit margin has shown a generally positive trend over the past five years. Starting at 32.79% in December 31, 2020, the gross profit margin increased to 36.67% by December 31, 2024. This improvement indicates that the company has been able to effectively manage its cost of goods sold and generate higher revenues relative to its production costs.

The steady increase in gross profit margin from 2020 to 2024 suggests that CTS Corporation has been able to enhance its operational efficiency and potentially negotiate better pricing with suppliers. A higher gross profit margin is typically seen as a positive indicator of a company's profitability and competitiveness in its industry.

However, it's worth noting that there was a slight dip in the gross profit margin in 2023 compared to the preceding and succeeding years. This could potentially be attributed to various factors such as changes in the cost structure, pricing strategy, or fluctuations in demand for CTS Corporation's products and services during that period.

Overall, the trend of increasing gross profit margin for CTS Corporation is a positive sign of the company's ability to effectively manage its production costs and generate higher profits from its operations.