CTS Corporation (CTS)
Debt-to-equity 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-equity ratio | 0.13 | 0.17 | 0.11 | 0.13 | 0.25 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $67,500K ÷ $526,822K
= 0.13
The debt-to-equity ratio of CTS Corp. has fluctuated over the past five years. In 2023, the ratio stood at 0.13, indicating that for every dollar of equity, the company has $0.13 in debt. This represents a slight decrease from the previous year's ratio of 0.17. The 2023 ratio is also higher than the 2021 ratio of 0.11. However, it is consistent with the 2020 ratio of 0.13.
Comparing the current ratio to 2019, when the ratio was 0.25, there has been a significant improvement in leveraging debt to finance operations. This downward trend indicates that the company has been reducing its reliance on debt as a source of financing relative to equity over the years. Overall, CTS Corp. seems to be managing its debt levels effectively, striking a balance between debt and equity financing.
Peer comparison
Dec 31, 2023