CTS Corporation (CTS)

Return on assets (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
Net income (ttm)	US$ in thousands	60,532	60,152	57,979	57,680	59,575	53,800	-21,894	-33,617	-41,866	-36,084	38,885	42,867	34,685	29,800	21,449	28,535	36,146	43,648	51,137	46,403
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
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%

December 31, 2023 calculation

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

CTS Corp.'s return on assets (ROA) has shown a steady improvement over the past eight quarters. ROA increased from 7.96% in Q4 2022 to 8.17% in Q4 2023, indicating that the company is utilizing its assets more efficiently to generate profits.

The positive trend continued in subsequent quarters, with ROA remaining above 7% consistently. This suggests that CTS Corp. has been effectively managing its assets to generate profits for its shareholders.

However, it is worth noting that there was a significant decline in ROA in Q2 and Q1 of 2022, where ROA dropped to -3.00% and -4.91% respectively. This indicates that during this period, the company's profitability was negatively impacted by its asset management.

Overall, CTS Corp.'s improving ROA signals that the company has been increasingly efficient in generating profits relative to its assets, which is a positive indicator of its financial performance and management effectiveness.