CTS Corporation (CTS)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	60,532	59,575	-41,866	34,686	36,146
Total assets	US$ in thousands	741,167	748,487	664,462	626,049	643,354
ROA		8.17%	7.96%	-6.30%	5.54%	5.62%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $60,532K ÷ $741,167K
= 8.17%

The return on assets (ROA) of CTS Corp. has demonstrated fluctuating trends over the past five years. The ROA increased from 5.62% in 2019 to 5.54% in 2020, reflecting a relatively stable performance. However, a significant decline was observed in 2021, where the ROA plummeted to -6.30%, indicating that the company's assets were not utilized effectively to generate profits during that period.

Subsequently, CTS Corp. was able to improve its financial performance, as evidenced by the ROA increasing to 7.96% in 2022 and further to 8.17% in 2023. These positive trends indicate that the company has been more efficient in utilizing its assets to generate earnings in recent years. Overall, the upward trajectory of the ROA demonstrates an improvement in the company's ability to generate profits relative to its total assets over the period under review.