CTS Corporation (CTS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 741,167 | 748,487 | 664,462 | 626,049 | 643,354 |
| Total stockholders’ equity | US$ in thousands | 526,822 | 506,224 | 463,578 | 423,682 | 405,219 |
| Financial leverage ratio | 1.41 | 1.48 | 1.43 | 1.48 | 1.59 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $741,167K ÷ $526,822K
= 1.41
CTS Corp.'s financial leverage ratio has shown a fluctuating trend over the past five years. The ratio decreased from 1.59 in 2019 to 1.48 in 2020, increased to 1.48 in 2022, and then slightly decreased to 1.41 in 2023. This indicates that the company has been managing its debt levels relative to its equity in a volatile manner. A financial leverage ratio above 1 suggests that the company relies more on debt to finance its operations, while a ratio below 1 indicates a higher proportion of equity in the capital structure. Therefore, CTS Corp. appears to have a moderate level of financial leverage, which could both amplify returns and risks for the company depending on economic conditions and market factors. It's essential for stakeholders to monitor how the company manages its leverage to ensure sustainable growth and financial stability.
Peer comparison
Dec 31, 2023