CTS Corporation (CTS)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 58,114 | 60,532 | 59,575 | -41,866 | 34,686 |
| Total stockholders’ equity | US$ in thousands | 1,017,870 | 526,822 | 506,224 | 463,578 | 423,682 |
| ROE | 5.71% | 11.49% | 11.77% | -9.03% | 8.19% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $58,114K ÷ $1,017,870K
= 5.71%
The return on equity (ROE) of CTS Corporation has shown fluctuations over the past five years. In December 2020, the ROE was at 8.19%, indicating a decent return for shareholders. However, by December 2021, the ROE had turned negative, reaching -9.03%, suggesting a loss-making year for the company.
There was a significant recovery in the following years, with the ROE climbing to 11.77% by December 2022 and 11.49% by December 2023. This improvement may signify enhanced profitability and effectiveness in utilizing shareholder equity.
By December 2024, the ROE slightly decreased to 5.71%, which, while lower than the previous year, still indicates the company generated a positive return for its shareholders.
Overall, the fluctuating trend in ROE for CTS Corporation over the five-year period suggests varying levels of profitability and efficiency in utilizing shareholder funds. The company should continue monitoring and analyzing these trends to ensure sustainable growth and value creation for its investors.
Peer comparison
Dec 31, 2024