CTS Corporation (CTS)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	526,822	506,224	463,578	423,682	405,219
ROE		11.49%	11.77%	-9.03%	8.19%	8.92%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $60,532K ÷ $526,822K
= 11.49%

CTS Corp.'s return on equity (ROE) has exhibited fluctuations over the past five years. In 2023, the ROE stands at 11.49%, a slight decrease from 2022's ROE of 11.77%. The positive ROE indicates that the company is generating a profit from shareholder equity, although the slight decrease may require further investigation.

The significant negative ROE in 2021 of -9.03% raises concerns as it indicates that the company's net income was not sufficient to cover shareholder equity, resulting in a loss. This anomaly should be thoroughly analyzed to identify the underlying issues that led to this poor performance.

Prior to 2021, the ROE figures for 2020 and 2019 were 8.19% and 8.92%, respectively. These positive ROEs suggest that the company was effectively using shareholder funds to generate profits during these years, albeit at a moderate rate.

Overall, the fluctuating trend in CTS Corp.'s ROE over the years underscores the importance of monitoring and evaluating the company's financial performance consistently. Further analysis and comparison with industry benchmarks can provide valuable insights into the company's operational efficiency and profitability.