CTS Corporation (CTS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 766,112 | 741,167 | 748,487 | 664,462 | 626,049 |
| Total stockholders’ equity | US$ in thousands | 1,017,870 | 526,822 | 506,224 | 463,578 | 423,682 |
| Financial leverage ratio | 0.75 | 1.41 | 1.48 | 1.43 | 1.48 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $766,112K ÷ $1,017,870K
= 0.75
The financial leverage ratio for CTS Corporation has exhibited some fluctuations over the years. Starting at 1.48 on December 31, 2020, it decreased to 1.43 by December 31, 2021, before increasing back to 1.48 by December 31, 2022. However, there was a notable decline in the financial leverage ratio to 1.41 by December 31, 2023. The most significant change occurred by December 31, 2024, where the financial leverage ratio dropped substantially to 0.75. This reduction suggests that the company may have reduced its reliance on debt financing or improved its ability to generate profits to meet its financial obligations without excessive debt. Overall, a lower financial leverage ratio indicates a lower level of financial risk and dependency on debt for CTS Corporation.
Peer comparison
Dec 31, 2024