CSG Systems International Inc (CSGS)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	109.60	113.54	107.67	107.60	109.99	106.30	103.79	100.00	100.16	101.09	99.25	106.23	98.23	98.38	105.91	110.38	103.19	104.88	119.86	114.70
Number of days of payables	days	19.59	18.19	16.47	15.99	21.36	14.77	15.60	16.38	17.03	16.55	16.71	17.25	15.76	19.43	18.30	20.31	17.54	21.26	25.31	24.07
Cash conversion cycle	days	90.01	95.34	91.20	91.61	88.63	91.53	88.19	83.62	83.14	84.54	82.54	88.97	82.47	78.95	87.61	90.07	85.65	83.62	94.54	90.63

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 109.60 – 19.59
= 90.01

The cash conversion cycle of CSG Systems International Inc. has shown some fluctuation over the past eight quarters. In Q4 2023, the cash conversion cycle was 82.09 days, showing an improvement compared to the previous quarter where it was 87.95 days. This decrease may indicate more efficient management of the company's working capital.

Overall, the company's cash conversion cycle has ranged from a low of 76.41 days in Q1 2022 to a high of 87.95 days in Q3 2023. A lower cash conversion cycle indicates that the company is able to convert its investments in inventory and accounts receivable into cash more quickly, which is generally seen as positive for the company's liquidity and financial health.

However, it is important to note that the cash conversion cycle fluctuates for various reasons, such as changes in the company's sales patterns, inventory management, or accounts receivable collection efficiency. It would be beneficial for CSG Systems International Inc. to continue monitoring and analyzing its cash conversion cycle to ensure efficient management of working capital and optimal liquidity levels.