CTS Corporation (CTS)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	74,285	72,576	69,289	68,453	76,092	72,720	77,176	81,430	85,301	89,812	86,135	84,028	76,480	75,181	69,473	55,136	45,130	40,384	37,249	48,090
Total assets	US$ in thousands	766,112	789,392	725,622	732,840	741,167	753,962	755,906	747,007	748,487	734,679	729,634	684,746	664,462	651,973	647,298	634,665	626,049	655,853	663,389	685,165
Operating ROA		9.70%	9.19%	9.55%	9.34%	10.27%	9.65%	10.21%	10.90%	11.40%	12.22%	11.81%	12.27%	11.51%	11.53%	10.73%	8.69%	7.21%	6.16%	5.61%	7.02%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $74,285K ÷ $766,112K
= 9.70%

The operating return on assets (Operating ROA) of CTS Corporation has shown fluctuation over the periods from March 31, 2020, to December 31, 2024. The Operating ROA began at 7.02% in March 2020 and generally increased, reaching its peak at 12.27% in March 2022. However, there was a slight decrease in the Operating ROA in the subsequent periods from June 2022 to December 2024, hovering around the range of 9% to 10.73%.

The Operating ROA measures the company's efficiency in generating profits from its assets used in its operations. The rising trend in the early periods indicates an improvement in operational performance and asset utilization. The peak in March 2022 indicates a period of strong profitability relative to the assets employed.

However, the decline in the Operating ROA post-March 2022 suggests a potential decrease in operational efficiency or a change in the asset structure impacting profitability. It is important for investors and stakeholders to assess the reasons behind these fluctuations and evaluate the company's operational effectiveness and asset management strategies.

Overall, the analysis of CTS Corporation's Operating ROA highlights the importance of monitoring changes in profitability relative to asset utilization over time to understand the company's operational performance and financial health.