CTS Corporation (CTS)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	75,051	80,425	84,881	89,135	93,006	89,812	86,135	84,028	76,480	75,181	69,473	55,136	45,130	40,384	37,249	48,090	53,816	58,442	64,436	61,897
Total assets	US$ in thousands	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	643,354	648,001	580,701	574,008
Operating ROA		10.13%	10.67%	11.23%	11.93%	12.43%	12.22%	11.81%	12.27%	11.51%	11.53%	10.73%	8.69%	7.21%	6.16%	5.61%	7.02%	8.36%	9.02%	11.10%	10.78%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $75,051K ÷ $741,167K
= 10.13%

To analyze CTS Corp.'s operating return on assets (operating ROA) based on the data provided, we can observe a general trend of decreasing operating ROA from Q1 2022 to Q4 2023. The operating ROA started at 12.55% in Q1 2022 and gradually declined to 11.08% in Q4 2023. This indicates a reduction in the company's ability to generate operating income relative to its total assets over this period.

While fluctuations are normal in a business environment, the consistent decline in operating ROA over the quarters raises concerns about the company's operational efficiency and profitability. It suggests that CTS Corp. may be experiencing challenges in optimizing its assets to generate sufficient operating income.

Further analysis and comparison with industry benchmarks and competitors would be necessary to understand the factors driving this downward trend in operating ROA and to identify potential areas for improvement within the company's operations and asset utilization strategies.