CTS Corporation (CTS)
Financial leverage ratio
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets | US$ in thousands | 766,112 | 789,392 | 725,622 | 732,840 | 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 |
Total stockholders’ equity | US$ in thousands | 1,017,870 | 530,806 | 522,751 | 521,285 | 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 |
Financial leverage ratio | 0.75 | 1.49 | 1.39 | 1.41 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $766,112K ÷ $1,017,870K
= 0.75
The financial leverage ratio of CTS Corporation has shown a decreasing trend from March 31, 2020, to December 31, 2024. The ratio started at 1.72 on March 31, 2020, and gradually declined to 0.75 by December 31, 2024. A financial leverage ratio of 1 indicates an equal proportion of debt and equity in the company's capital structure.
The decreasing trend in the financial leverage ratio suggests that CTS Corporation has been reducing its reliance on debt financing over the years. A lower financial leverage ratio indicates a lower level of financial risk as the company is using less debt to finance its operations. This might signify a more conservative approach to capital structure management by the company.
The significant drop in the financial leverage ratio from 1.49 on September 30, 2024, to 0.75 on December 31, 2024, raises some questions about the abrupt change in the capital structure of CTS Corporation during that period. It would be important to further investigate the reasons behind such a drastic decrease in the financial leverage ratio to understand the implications for the company's overall financial health and strategic direction.
Peer comparison
Dec 31, 2024