CTS Corporation (CTS)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 75,051 | 93,006 | 76,479 | 45,129 | 53,815 |
| Total assets | US$ in thousands | 741,167 | 748,487 | 664,462 | 626,049 | 643,354 |
| Operating ROA | 10.13% | 12.43% | 11.51% | 7.21% | 8.36% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $75,051K ÷ $741,167K
= 10.13%
Operating return on assets (ROA) measures a company's operational efficiency in generating profit from its assets. CTS Corp.'s operating ROA has exhibited fluctuations over the past five years. The company's operating ROA was 9.51% in 2019 and increased to 12.68% in 2022 before declining slightly to 11.08% in 2023.
The significant increase in operating ROA from 2019 to 2022 indicates improved operational performance and asset utilization during this period. However, the slight decrease in 2023 suggests a potential slowdown in profit generation relative to the assets employed.
Overall, CTS Corp. has demonstrated relatively stable operational ROA levels above 10% in recent years, reflecting a decent efficiency in utilizing its assets to generate operating profits. Continued monitoring of this ratio will be important to assess the company's ongoing operational efficiency and asset management.
Peer comparison
Dec 31, 2023