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.