CTS Corporation (CTS)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 67,500 | 83,670 | 50,000 | 54,600 | 99,700 |
| Total stockholders’ equity | US$ in thousands | 526,822 | 506,224 | 463,578 | 423,682 | 405,219 |
| Debt-to-capital ratio | 0.11 | 0.14 | 0.10 | 0.11 | 0.20 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $67,500K ÷ ($67,500K + $526,822K)
= 0.11
The debt-to-capital ratio for CTS Corp. has fluctuated over the past five years. In 2023, the ratio decreased to 0.11 from 0.14 in 2022, indicating a lower level of debt relative to the company's total capital. This could suggest improved financial stability and a reduced reliance on debt for funding. Comparing to the ratios of 0.10 and 0.11 in 2021 and 2020 respectively, the 2023 ratio remains relatively consistent. However, it is notably lower than the elevated ratio of 0.20 in 2019, reflecting a significant reduction in debt relative to the company's capital structure over the years. Overall, the decreasing trend in the debt-to-capital ratio for CTS Corp. indicates a positive shift towards a healthier financial position with better debt management practices.
Peer comparison
Dec 31, 2023