CSG Systems International Inc (CSGS)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	—	—	—	—
Days of sales outstanding (DSO)	days	109.56	109.82	100.17	98.23	103.19
Number of days of payables	days	19.59	20.86	17.02	14.62	16.65
Cash conversion cycle	days	89.97	88.96	83.16	83.61	86.54

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 109.56 – 19.59
= 89.97

The cash conversion cycle of CSG Systems International Inc. has shown a fluctuating trend over the past five years. In 2023, the cash conversion cycle was 82.09 days, which increased from 79.14 days in 2022. This indicates that, on average, it took the company 82.09 days to convert its investments in inventory and other resources into cash receipts from customers in 2023.

The company's cash conversion cycle was relatively shorter in 2021 at 76.15 days compared to the previous years. However, it then increased to 77.90 days in 2020 and 80.46 days in 2019.

Overall, a longer cash conversion cycle suggests that the company takes more time to turn its investments into cash, which might put a strain on its working capital and liquidity. It is essential for the company to monitor and manage its cash conversion cycle efficiently to ensure smoother operations and financial health.