CSG Systems International Inc (CSGS)

Activity ratios

Short-term

Turnover 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
Inventory turnover — — — — — — — — — — — — — — — — — — — —
Receivables turnover 3.33 3.21 3.39 3.39 3.32 3.43 3.52 3.65 3.64 3.61 3.68 3.44 3.72 3.71 3.45 3.31 3.54 3.48 3.05 3.18
Payables turnover 18.63 20.06 22.16 22.82 17.09 24.72 23.39 22.29 21.44 22.05 21.84 21.16 23.17 18.79 19.95 17.97 20.81 17.17 14.42 15.16
Working capital turnover 3.88 3.89 3.90 3.88 4.56 4.36 42.87 26.47 19.67 17.61 18.49 18.04 3.56 3.52 3.65 3.94 3.98 3.95 4.01 3.97

The activity ratios for CSG Systems International Inc. provide insights into the efficiency of the company's operations.

1. Receivables Turnover:
CSG Systems International Inc. has maintained a relatively stable receivables turnover ratio over the past eight quarters, ranging from 3.22 to 3.52. This indicates that the company collects its accounts receivable approximately 3 to 3.5 times per year on average. A higher turnover ratio is generally favorable as it reflects quicker cash conversion from sales. CSG Systems' consistent ratio suggests effective management of accounts receivable and timely collection practices.

2. Payables Turnover:
The payables turnover ratio for CSG Systems International Inc. has fluctuated over the quarters, ranging from 11.84 to 17.04. A higher turnover ratio indicates that the company is paying its suppliers more frequently. The fluctuations in this ratio may reflect changes in the company's payment terms or purchasing patterns. Generally, a higher payables turnover ratio reflects efficient cash management and favorable relationships with suppliers.

3. Working Capital Turnover:
CSG Systems International Inc.'s working capital turnover ratio has shown significant variability over the quarters. It ranged from 3.88 to 42.90, with a notable spike in Q2 2022. A high working capital turnover ratio signifies that the company is generating substantial revenue relative to its working capital. The sudden spike in Q2 2022 might be attributed to specific business activities or seasonal variations. A consistent and stable turnover ratio in this area is generally desirable as it indicates efficient utilization of working capital.

Overall, while the company's receivables turnover and payables turnover ratios show consistent patterns, the working capital turnover ratio exhibits significant fluctuations that may warrant further investigation into the underlying reasons for the variability.

Average number of days

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
Days of inventory on hand (DOH) days — — — — — — — — — — — — — — — — — — — —
Days of sales outstanding (DSO) days 109.60 113.54 107.67 107.60 109.99 106.30 103.79 100.00 100.16 101.09 99.25 106.23 98.23 98.38 105.91 110.38 103.19 104.88 119.86 114.70
Number of days of payables days 19.59 18.19 16.47 15.99 21.36 14.77 15.60 16.38 17.03 16.55 16.71 17.25 15.76 19.43 18.30 20.31 17.54 21.26 25.31 24.07

Days of inventory on hand (DOH) data is missing for all quarters, making it difficult to assess how efficiently CSG Systems International Inc. manages its inventory levels.

Days of sales outstanding (DSO) remained relatively stable over the past eight quarters, ranging from 106.30 days to 113.50 days. This indicates that on average, the company takes around 107 days to collect outstanding receivables from customers, suggesting a consistent credit collection policy.

Number of days of payables decreased over the quarters, from 30.82 days in Q4 2022 to 22.66 days in Q1 2023. This trend implies that the company is taking slightly longer to pay its creditors, which could indicate improved cash flow management or negotiations with suppliers for more favorable payment terms.

Overall, while the company's DSO metric suggests room for improvement in managing receivables, the decreasing trend in the number of days of payables is a positive sign of potential cash flow management efforts. Further analysis of inventory turnover and the efficiency of working capital management would provide a more comprehensive view of CSG Systems International Inc.'s operational efficiency.

Long-term

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
Fixed asset turnover 17.84 17.07 16.29 16.37 15.18 14.96 14.06 14.92 14.19 13.42 12.44 12.17 12.12 11.84 11.71 12.35 11.81 11.75 11.27 10.69
Total asset turnover 0.81 0.87 0.89 0.87 0.81 0.85 0.82 0.81 0.75 0.75 0.78 0.78 0.74 0.77 0.78 0.81 0.78 0.82 0.81 0.80

The fixed asset turnover ratio for CSG Systems International Inc. has shown an upward trend over the quarters provided, with a value of 17.84 in Q4 2023 compared to 15.18 in Q4 2022. This indicates that the company is generating more revenue per dollar of fixed assets invested, which is a positive sign of efficiency in asset utilization.

On the other hand, the total asset turnover ratio has fluctuated over the quarters, with the highest value of 0.89 in Q2 2023 and the lowest value of 0.81 in both Q4 2022 and Q1 2022. This ratio measures the efficiency of the company in generating sales from all its assets. Although there is some variability, the overall trend suggests that CSG Systems International Inc. has been able to effectively generate revenue relative to its total assets.

In summary, the increasing trend in the fixed asset turnover ratio signals better efficiency in utilizing fixed assets, while the variable but relatively stable total asset turnover ratio indicates the company's ability to generate sales from its total assets. Both ratios point towards efficient asset management and effective utilization of resources by CSG Systems International Inc.