CTS Corporation (CTS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the provided data, CTS Corporation consistently maintains a very strong solvency position as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which are reported as 0.00 across all the periods from March 31, 2020, to December 31, 2024.
Additionally, the financial leverage ratio, which measures the extent of a company's debt financing relative to its equity, shows a decreasing trend from 1.72 on March 31, 2020, to 0.75 on December 31, 2024. This declining trend indicates that the company has been reducing its financial leverage over time, which generally implies better financial stability and lower financial risk.
Overall, CTS Corporation's consistent low debt ratios and decreasing financial leverage ratio suggest that the company is effectively managing its liabilities and maintaining a strong financial position with a conservative capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 18.44 | 20.86 | 21.90 | 22.34 | 25.23 | 27.01 | 35.45 | 40.00 | 44.29 | 44.68 | -11.06 | -22.74 | -27.50 | -24.76 | 18.59 | 18.10 | 13.85 | 11.86 | 11.61 | 17.24 |
CTS Corporation's interest coverage ratio has fluctuated over the analyzed period, indicating varying levels of ability to cover interest expenses with operating income. The company experienced a strong interest coverage ratio in the range of 11 to 18 from March 2020 to June 2021, reflecting a comfortable capacity to meet interest obligations. However, the interest coverage ratio turned negative in the subsequent quarters, reaching a low of -27.50 by December 2021, indicating an inability to cover interest expenses with operating income.
The negative interest coverage ratios in the latter part of 2021 and early 2022 raise concerns about the company's financial health and its ability to service its debt obligations. The sharp increase in the interest coverage ratio in the following quarters, reaching as high as 44.68 by September 2022, suggests a significant improvement in the company's ability to cover interest expenses.
Subsequently, the interest coverage ratio declined but remained positive, indicating continued improvement in the company's financial position. Overall, close monitoring of CTS Corporation's interest coverage ratio is advisable to assess its financial stability and ability to meet debt obligations in the future.