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.