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.