CTS Corporation (CTS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.12 | 0.12 | 0.07 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.16 | 0.21 | 0.22 | 0.15 | 0.17 | 0.09 | 0.09 |
| Debt-to-capital ratio | 0.11 | 0.13 | 0.13 | 0.14 | 0.14 | 0.15 | 0.16 | 0.09 | 0.10 | 0.10 | 0.10 | 0.10 | 0.11 | 0.20 | 0.26 | 0.28 | 0.20 | 0.22 | 0.11 | 0.11 |
| Debt-to-equity ratio | 0.13 | 0.15 | 0.15 | 0.16 | 0.17 | 0.17 | 0.19 | 0.10 | 0.11 | 0.11 | 0.11 | 0.11 | 0.13 | 0.26 | 0.35 | 0.38 | 0.25 | 0.29 | 0.13 | 0.13 |
| 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 |
The solvency ratios of CTS Corp. indicate the firm's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.
The debt-to-assets ratio has been gradually decreasing from 0.11 in Q4 2022 to 0.09 in Q4 2023, suggesting a lower proportion of the company's assets are funded by debt. This trend indicates improved financial stability as the company is relying less on borrowed funds.
Similarly, the debt-to-capital and debt-to-equity ratios have exhibited a declining trend over the periods, indicating a lower reliance on debt and improved financial health. The decreasing trend in these ratios suggests that the company is using a smaller proportion of debt in its capital structure compared to equity.
The financial leverage ratio, which measures the proportion of the company's assets that are funded by debt, also shows a decreasing trend from 1.48 in Q4 2022 to 1.41 in Q4 2023. A lower financial leverage ratio indicates less reliance on debt to finance the company's operations.
Overall, the decreasing trend in CTS Corp.'s solvency ratios signals a positive shift towards a stronger financial position and reduced risk of insolvency. However, it is crucial for the company to continue monitoring and managing its debt levels effectively to maintain financial stability and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for CTS Corp. has shown a significant improvement over the quarters, with a notable increase from 64.53 in Q2 2022 to 699.60 in Q1 2023. This indicates that the company's ability to cover its interest expenses with its operating income has strengthened considerably. The consistent upward trend in the interest coverage ratio reflects a positive financial performance and suggests that CTS Corp. is in a better position to meet its interest obligations comfortably. This improvement may signify enhanced profitability and operational efficiency, which could be a positive signal for investors and creditors regarding the company's financial health and stability.