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.
Peer comparison
Dec 31, 2024