CTS Corporation (CTS)

Debt-to-capital ratio

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Long-term debt US$ in thousands 67,500 76,665 77,040 80,261 83,670 85,478 91,027 50,000 50,000 50,000 50,000 50,000 54,600 106,300 141,300 151,200 99,700 112,700 50,000 50,000
Total stockholders’ equity US$ in thousands 526,822 522,667 521,395 514,136 506,224 490,612 485,947 480,178 463,578 457,374 454,309 435,716 423,682 413,966 400,892 397,466 405,219 395,194 395,545 386,893
Debt-to-capital ratio 0.11 0.13 0.13 0.14 0.14 0.15 0.16 0.09 0.10 0.10 0.10 0.10 0.11 0.20 0.26 0.28 0.20 0.22 0.11 0.11

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 eight quarters, ranging from 0.09 to 0.16. A lower ratio indicates a lower level of debt relative to the company's total capital, while a higher ratio indicates higher leverage.

In general, the trend for CTS Corp.'s debt-to-capital ratio has shown a slight increase from Q1 2022 to Q4 2023, with the ratio moving from 0.09 to 0.11 in the initial quarters and then ranging between 0.13 and 0.16 in the most recent quarters. This suggests that the company has been gradually taking on more debt relative to its capital base over this time period.

It is important to note that the debt-to-capital ratio is just one of many financial metrics that should be considered when assessing a company's financial health and risk profile. The trend in this ratio indicates that CTS Corp. has been increasing its reliance on debt financing, which could potentially impact its financial stability and flexibility in the future.