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.