CTS Corporation (CTS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 34.68% | 35.18% | 35.32% | 35.52% | 35.87% | 36.08% | 36.62% | 36.90% | 35.99% | 35.49% | 34.33% | 33.10% | 32.79% | 32.46% | 32.35% | 32.98% | 33.60% | 34.07% | 34.90% | 35.22% |
| Operating profit margin | 13.64% | 14.16% | 14.50% | 15.23% | 15.85% | 15.56% | 15.73% | 15.79% | 14.91% | 14.93% | 14.04% | 12.27% | 10.64% | 9.71% | 8.91% | 10.58% | 11.47% | 12.33% | 13.50% | 13.04% |
| Pretax margin | 13.65% | 13.78% | 13.13% | 13.28% | 13.76% | 12.95% | -5.92% | -9.38% | -11.87% | -11.18% | 9.66% | 12.08% | 10.72% | 9.36% | 7.64% | 9.24% | 10.72% | 11.46% | 12.88% | 12.03% |
| Net profit margin | 11.00% | 10.59% | 9.90% | 9.86% | 10.15% | 9.32% | -4.00% | -6.32% | -8.16% | -7.17% | 7.86% | 9.54% | 8.18% | 7.16% | 5.13% | 6.28% | 7.71% | 9.21% | 10.72% | 9.78% |
CTS Corp.'s profitability ratios have shown a downward trend over the past eight quarters. The gross profit margin has decreased from 36.08% in Q3 2022 to 34.68% in Q4 2023, indicating a decline in the company's ability to generate profit after accounting for the cost of goods sold. Similarly, the operating profit margin has decreased from 16.01% in Q3 2022 to 14.92% in Q4 2023, suggesting a reduction in efficiency in managing operating expenses.
The pretax margin has also shown a decline, with a significant drop from 13.76% in Q4 2022 to 13.65% in Q4 2023. This indicates a decrease in the company's profitability before accounting for taxes. The net profit margin has followed a similar downward trend, decreasing from 10.15% in Q4 2022 to 11.00% in Q4 2023, indicating a decrease in the company's overall profitability after accounting for all expenses, including taxes.
Overall, the declining trend in profitability ratios for CTS Corp. over the past eight quarters raises concerns about the company's ability to maintain and improve its profitability levels in the future. Management may need to closely monitor and address factors impacting margins to enhance profitability and ensure sustainable growth.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 8.17% | 7.98% | 7.67% | 7.72% | 7.96% | 7.32% | -3.00% | -4.91% | -6.30% | -5.53% | 6.01% | 6.75% | 5.54% | 4.54% | 3.23% | 4.16% | 5.62% | 6.74% | 8.81% | 8.08% |
| Return on total capital | 13.21% | 13.60% | 13.27% | 13.47% | 14.06% | 13.32% | -5.23% | -9.02% | -11.44% | -10.65% | 9.99% | 11.79% | 10.19% | 8.16% | 6.53% | 8.20% | 10.48% | 11.13% | 14.22% | 13.52% |
| Return on equity (ROE) | 11.49% | 11.51% | 11.12% | 11.22% | 11.77% | 10.97% | -4.51% | -7.00% | -9.03% | -7.89% | 8.56% | 9.84% | 8.19% | 7.20% | 5.35% | 7.18% | 8.92% | 11.04% | 12.93% | 11.99% |
CTS Corp. has demonstrated a consistent operating return on assets (Operating ROA) in the range of 11.08% to 12.68% over the past eight quarters, indicating the company's ability to generate operational profits from its total assets. The slight fluctuations in Operating ROA suggest that CTS Corp. is effectively managing its operational efficiency.
Return on assets (ROA) has varied between 7.67% and 8.17% over the same period, reflecting the company's ability to generate profits relative to its total assets. Although ROA shows a relatively stable performance compared to Operating ROA, there is room for improvement in maximizing profits from all assets.
Return on total capital has shown a consistent performance ranging from 13.82% to 16.21% throughout the quarters, demonstrating CTS Corp.'s efficient use of both equity and debt capital to generate returns for its investors. This ratio indicates that the company effectively earns profits on all invested capital.
Despite some fluctuations, the return on equity (ROE) for CTS Corp. has generally been positive, ranging from 11.12% to 11.77% over the analyzed quarters. This indicates that the company is generating profits for its shareholders from the equity invested in the business. However, the negative ROE values observed in Q2 and Q1 of 2022 suggest potential concerns around profitability in those specific periods.
In summary, CTS Corp. has maintained satisfactory profitability ratios such as Operating ROA, ROA, return on total capital, and ROE, indicating good operational efficiency, effective capital utilization, and profitability for the company and its stakeholders.