CSG Systems International Inc (CSGS)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.46 | 1.54 | 1.45 | 1.08 | 1.66 |
| Quick ratio | 0.26 | 0.66 | 0.29 | 0.34 | 0.57 |
| Cash ratio | 0.26 | 0.66 | 0.29 | 0.34 | 0.57 |
CSG Systems International Inc's current ratio experienced fluctuations over the five-year period, ranging from a high of 1.66 in 2020 to a low of 1.08 in 2021, with subsequent improvements in 2022 and 2023 before stabilizing at 1.46 in 2024. This indicates the company's ability to cover its short-term obligations with its current assets has generally been adequate over the years.
In contrast, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, showed a more volatile trend. It declined from 0.57 in 2020 to a low of 0.26 in 2024, with fluctuations in between. This suggests the company may have had some challenges in meeting its short-term liabilities using only its most liquid assets.
Furthermore, the cash ratio for CSG Systems International Inc also demonstrated fluctuations over the period, mirroring the trend of the quick ratio. It ranged from 0.26 to 0.66, indicating the company's ability to cover its current liabilities with its cash and cash equivalents varied significantly.
Overall, while the current ratio indicates a generally stable liquidity position for CSG Systems International Inc, the quick and cash ratios reveal potential challenges in the company's ability to quickly meet its short-term obligations using its most liquid assets. Monitoring these ratios closely will be essential for assessing the company's ongoing liquidity health.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Based on the data provided, CSG Systems International Inc has consistently maintained a cash conversion cycle of 0.00 days from December 31, 2020, through December 31, 2024. A cash conversion cycle of 0.00 days indicates that the company is efficiently managing its cash flow and working capital, as it is able to convert its inventory into sales, collect receivables, and pay its payables almost instantaneously.
This suggests that CSG Systems International Inc is operating with minimal delays in receiving and using cash, thereby optimizing its liquidity and financial efficiency. A shorter cash conversion cycle often indicates better financial health and effective management of resources within the company.