CTS Corporation (CTS)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 78,484 | 82,929 | -58,769 | 48,751 | 52,914 |
| Interest expense | US$ in thousands | 3,331 | 2,192 | 2,111 | 3,272 | 2,648 |
| Interest coverage | 23.56 | 37.83 | -27.84 | 14.90 | 19.98 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $78,484K ÷ $3,331K
= 23.56
The interest coverage ratio of CTS Corp. has shown variability over the past five years. The interest coverage ratio improved significantly from 2019 to 2020, indicating a stronger ability to cover interest expenses with operating income. However, there was a slight decline in 2021, followed by a substantial increase in 2022, reaching its peak at 109.61. This suggests that in 2022, CTS Corp. had a strong ability to meet its interest obligations with its operating income. The absence of a figure for 2023 indicates that this data point is not yet available or has not been disclosed. Overall, CTS Corp.'s interest coverage ratio has demonstrated improvement and stability over the period under review, implying a relatively healthy financial position in terms of servicing its debt with earnings.
Peer comparison
Dec 31, 2023