CTS Corporation (CTS)

Financial leverage 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
Total assets	US$ in thousands	741,167	753,962	755,906	747,007	748,487	734,679	729,634	684,746	664,462	651,973	647,298	634,665	626,049	655,853	663,389	685,165	643,354	648,001	580,701	574,008
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
Financial leverage ratio		1.41	1.44	1.45	1.45	1.48	1.50	1.50	1.43	1.43	1.43	1.42	1.46	1.48	1.58	1.65	1.72	1.59	1.64	1.47	1.48

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 been relatively stable in the range of 1.41 to 1.50 over the past eight quarters. A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing.

The slight fluctuations in the ratio suggest that CTS Corp. has maintained a consistent level of leverage in its capital structure. A higher financial leverage ratio may indicate higher financial risk due to higher debt levels, which can lead to increased interest expenses and potential liquidity issues.

CTS Corp. should continue to monitor its financial leverage ratio to ensure it remains at a manageable level and does not negatively impact the company's overall financial health. It is also important for the company to have a balanced capital structure that optimizes the use of debt and equity financing to support its growth and profitability objectives.