CTS Corporation (CTS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 0.75 | 1.41 | 1.48 | 1.43 | 1.48 |
CTS Corporation has consistently maintained a strong solvency position, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have been reported at 0.00 for the years spanning from December 31, 2020, to December 31, 2024. This suggests that the company has minimal reliance on debt to finance its operations and investments relative to its total assets, capital, and equity.
Additionally, the financial leverage ratio of CTS Corporation has shown a decreasing trend from 1.48 on December 31, 2020, to 0.75 on December 31, 2024. This decreasing trend indicates that the company has been reducing its reliance on debt financing over the years, leading to a lower overall financial risk and improved solvency position.
Overall, the solvency ratios demonstrate that CTS Corporation has a conservative approach to managing its capital structure and debt levels, which may enhance its financial stability and ability to withstand economic downturns.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 17.81 | 22.53 | 38.08 | -28.19 | 13.85 |
Going through the Interest Coverage ratios of CTS Corporation for the past five years reveals some fluctuation in the company's ability to cover its interest expenses.
- As of December 31, 2020, the interest coverage stood at 13.85, indicating that the company generated operating earnings 13.85 times higher than its interest expenses, reflecting a strong ability to meet its interest obligations.
- A significant decline was noted by December 31, 2021, with the interest coverage ratio plunging to -28.19. A negative value implies that the operating earnings were insufficient to cover the interest expenses, signaling a potential financial strain for the company during that year.
- However, the company rebounded strongly in the following years. By December 31, 2022, the interest coverage ratio improved significantly to 38.08, indicating a robust capacity to cover interest payments from operating earnings.
- The trend continued positively through December 31, 2023, where the interest coverage ratio was 22.53, showcasing a healthy ability to meet interest obligations.
- By December 31, 2024, the interest coverage ratio was 17.81, remaining at a relatively strong level, although slightly lower than the previous year.
Overall, while fluctuations were observed in the past five years, CTS Corporation exhibited a mix of strong and weak interest coverage ratios, emphasizing the importance of closely monitoring the company's financial performance and ability to cover interest expenses in the future.