CTS Corporation (CTS)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 78,094 | 78,490 | 75,621 | 76,814 | 84,040 | 86,743 | 90,620 | 93,610 | 97,080 | 90,431 | -24,277 | -47,808 | -58,059 | -55,260 | 47,870 | 53,861 | 45,307 | 41,741 | 40,334 | 52,285 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,017,870 | 530,806 | 522,751 | 521,285 | 526,822 | 522,667 | 521,395 | 514,136 | 506,224 | 490,612 | 485,947 | 480,178 | 463,578 | 457,374 | 454,309 | 435,716 | 423,682 | 413,966 | 400,892 | 397,466 |
| Return on total capital | 7.67% | 14.79% | 14.47% | 14.74% | 15.95% | 16.60% | 17.38% | 18.21% | 19.18% | 18.43% | -5.00% | -9.96% | -12.52% | -12.08% | 10.54% | 12.36% | 10.69% | 10.08% | 10.06% | 13.15% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $78,094K ÷ ($—K + $1,017,870K)
= 7.67%
The Return on Total Capital for CTS Corporation fluctuated over the time period analyzed. It started at 13.15% in March 2020, decreased to 10.06% by June 2020, and remained relatively stable around the 10% mark for the rest of 2020. However, there was an increase to 12.36% in March 2021 and then a drop to 10.54% in June 2021. The trend took a significant negative turn in the third quarter of 2021, with negative returns of -12.08% and -12.52% in September and December 2021, respectively.
The negative trend continued into 2022, with returns of -9.96% and -5.00% in the first two quarters. However, there was a substantial rebound in the third quarter of 2022, with a return of 18.43%, followed by further improvements to 19.18% and 18.21% in the subsequent quarters. The positive momentum continued into 2023, with returns ranging from 17.38% to 15.95%.
However, there was a noticeable decline in the Return on Total Capital in the last quarter of 2024, dropping to 7.67%. Overall, the Return on Total Capital for CTS Corporation demonstrated variability and some periods of underperformance, but also exhibited periods of recovery and improvement. It is important for stakeholders to closely monitor the company's capital efficiency and profitability in order to assess its financial health and sustainability.
Peer comparison
Dec 31, 2024