CSG Systems International Inc (CSGS)

Working capital turnover

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
Revenue (ttm) US$ in thousands 1,197,248 1,177,920 1,169,645 1,165,654 1,169,258 1,161,810 1,148,250 1,124,091 1,089,752 1,074,901 1,064,802 1,057,768 1,046,487 1,031,949 1,012,848 998,035 990,533 984,793 992,099 997,634
Total current assets US$ in thousands 900,882 787,240 759,041 733,802 862,226 760,067 725,415 731,538 765,955 691,725 708,255 686,775 748,199 721,717 677,944 643,008 698,345 637,186 642,768 598,304
Total current liabilities US$ in thousands 615,209 499,509 476,444 421,167 560,836 461,533 431,102 441,735 527,209 445,380 683,437 646,877 695,102 663,241 623,239 587,733 420,015 357,386 370,767 344,803
Working capital turnover 4.19 4.09 4.14 3.73 3.88 3.89 3.90 3.88 4.56 4.36 42.90 26.51 19.71 17.65 18.51 18.06 3.56 3.52 3.65 3.94

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,197,248K ÷ ($900,882K – $615,209K)
= 4.19

The working capital turnover ratio measures the efficiency with which a company is utilizing its working capital to generate revenue. A higher ratio indicates better efficiency in generating sales from the company's current assets.

Based on the data provided for CSG Systems International Inc, we can observe fluctuations in the working capital turnover ratio over the quarters. The ratio started at 3.94 in March 2020, showing a steady decline until September 2020, where it reached 3.52. From December 2020 to June 2021, there was a significant spike in the ratio, increasing from 3.56 to 18.51, indicating a substantial improvement in efficiency in utilizing working capital during this period.

The ratio continued to show high values throughout 2021, peaking at 42.90 in June 2022, which could suggest tighter management of working capital and increased sales generation. However, there was a sharp decline in the ratio in September 2022, dropping to 4.36, followed by fluctuations around 4 in the subsequent quarters up to December 2024.

Overall, the trend in the working capital turnover ratio for CSG Systems International Inc has shown periods of both high and low efficiency in converting working capital into revenue. It is important for the company to monitor and analyze these fluctuations to ensure optimal management of working capital for sustainable operational performance.