CTS Corporation (CTS)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	71,223	75,153	80,737	-60,880	45,479
Revenue	US$ in thousands	515,771	550,422	586,869	512,925	424,066
Pretax margin		13.81%	13.65%	13.76%	-11.87%	10.72%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $71,223K ÷ $515,771K
= 13.81%

CTS Corporation's pretax margin has shown significant fluctuations over the past five years. In December 31, 2020, the pretax margin stood at a healthy 10.72%, indicating that the company was generating a profit before taxes on its operations. However, in December 31, 2021, the pretax margin dropped to a negative figure of -11.87%, suggesting that the company incurred losses before accounting for taxes.

The following years saw a positive trend in pretax margin for CTS Corporation, with December 31, 2022, showing a robust improvement at 13.76%. This positive momentum was sustained in the subsequent years, with pretax margins of 13.65% in December 31, 2023, and 13.81% in December 31, 2024. Overall, the improving trend in pretax margin indicates that CTS Corporation has effectively managed its expenses and operations to generate higher profits before tax obligations over the recent years.