CSG Systems International Inc (CSGS)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	1,169,541	1,161,418	1,147,858	1,123,699	1,089,401	1,074,926	1,064,033	1,056,215	1,044,162	1,029,599	1,011,292	997,263	990,533	984,793	992,099	997,634	996,810	989,330	950,971	918,148
Total current assets	US$ in thousands	862,226	760,067	725,415	731,538	765,955	691,725	708,255	686,775	748,199	721,717	677,944	643,008	714,591	637,186	642,768	598,304	669,082	607,465	572,628	550,728
Total current liabilities	US$ in thousands	560,836	461,533	431,102	441,735	527,209	445,380	683,437	646,877	695,102	663,241	623,239	587,733	436,260	357,386	370,767	344,803	418,693	357,079	335,584	319,480
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,169,541K ÷ ($862,226K – $560,836K)
= 3.88

The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate sales revenue. A higher ratio indicates efficiency in converting working capital into sales.

Based on the data provided, we observe that CSG Systems International Inc.'s working capital turnover ratio has fluctuated over the past eight quarters. In Q4 2023, the ratio was 3.88, which remained relatively consistent with the previous quarter's ratio of 3.89. This indicates that the company was able to generate $3.88 in sales revenue for every dollar of working capital invested during that quarter.

Comparing these recent quarters to the same period in the previous year, we note a significant decline in the working capital turnover ratio. In Q4 2022, the ratio stood notably higher at 4.56, suggesting greater efficiency in utilizing working capital to generate sales revenue.

However, the most notable deviation in the working capital turnover ratio was observed in Q2 2022 and Q3 2022, where the ratios significantly spiked to 42.90 and 26.51, respectively. Such extraordinarily high ratios may indicate anomalies or irregularities in the financial data for those quarters that warrant further investigation.

Overall, while CSG Systems International Inc. has shown variations in its working capital turnover ratio over the past eight quarters, the recent consistency in the ratio around the 3.88-3.90 range implies a stable conversion of working capital into sales revenue in the most recent quarters. Further trend analysis and comparison with industry benchmarks could provide valuable insights into the company's working capital management efficiency.