CTS Corporation (CTS)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	78,484	81,508	79,414	80,040	82,929	76,741	-30,204	-47,821	-58,769	-54,040	50,358	57,253	48,750	42,476	35,395	45,009	52,914	56,531	63,363	59,089
Interest expense (ttm)	US$ in thousands	3,331	3,211	2,556	2,340	2,192	2,024	2,196	2,102	2,111	2,232	2,575	2,976	3,272	3,520	3,475	3,033	2,648	2,229	1,906	2,010
Interest coverage		23.56	25.38	31.07	34.21	37.83	37.92	-13.75	-22.75	-27.84	-24.21	19.56	19.24	14.90	12.07	10.19	14.84	19.98	25.36	33.24	29.40

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $78,484K ÷ $3,331K
= 23.56

The interest coverage ratio for CTS Corp. has been steadily improving over the past several quarters, indicating the company's ability to meet its interest obligations from its operating profits. In Q4 2022, the interest coverage ratio was 109.61, showing a significant increase from the previous quarters in 2022. This trend continued into Q1 2023, where the interest coverage ratio further improved to 699.60, reflecting the company's increased profitability and financial stability. Overall, the consistently strong interest coverage ratios suggest that CTS Corp. has a healthy financial position and should be able to comfortably cover its interest expenses in the near term.

It should be noted that the interest coverage ratio was not available for Q2 and Q3 of 2023, thus potentially missing out on a more comprehensive picture of the company's financial health during those periods.