CSG Systems International Inc (CSGS)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,197,250	1,169,260	1,089,750	1,046,490	990,533
Total current assets	US$ in thousands	900,882	862,226	765,955	748,199	698,345
Total current liabilities	US$ in thousands	615,209	560,836	527,209	695,102	420,015
Working capital turnover		4.19	3.88	4.56	19.71	3.56

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,197,250K ÷ ($900,882K – $615,209K)
= 4.19

The working capital turnover ratio indicates how efficiently a company is using its working capital to generate sales revenue. Analyzing the data provided for CSG Systems International Inc, we observe fluctuations in the working capital turnover over the years:

- In December 2020, the company had a working capital turnover of 3.56, which implies that for every dollar of working capital invested, the company generated $3.56 in sales.
- By December 2021, there was a significant increase in the working capital turnover to 19.71, indicating a substantial improvement in the efficiency of working capital utilization.
- However, in December 2022, the working capital turnover decreased to 4.56, suggesting a slight decline in the efficiency compared to the previous year.
- The ratio further declined to 3.88 by December 2023, indicating a less efficient utilization of working capital.
- Finally, by December 2024, the working capital turnover ratio improved to 4.19, showing a modest recovery in the efficiency of working capital management.

Overall, the trend in CSG Systems International Inc's working capital turnover shows variability over the years, with notable improvements in certain periods and slight declines in others. It is essential for the company to maintain a balance between managing its working capital efficiently and generating sales revenue effectively to ensure sustainable growth and profitability.