CSG Systems International Inc (CSGS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 186,264 | 150,365 | 205,635 | 188,699 | 156,548 |
| Short-term investments | US$ in thousands | 0 | 71 | 28,037 | 51,598 | 26,109 |
| Total current liabilities | US$ in thousands | 560,836 | 527,209 | 695,102 | 436,260 | 418,693 |
| Cash ratio | 0.33 | 0.29 | 0.34 | 0.55 | 0.44 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($186,264K
+ $0K)
÷ $560,836K
= 0.33
The cash ratio for CSG Systems International Inc. has exhibited some fluctuations over the past five years. The trend indicates that the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents has varied.
In 2023, the cash ratio improved to 0.91 from 0.83 in 2022, suggesting a stronger ability to meet short-term obligations with available cash. This may indicate better liquidity management or improved cash reserves during the most recent period.
Comparing 2023 to 2021 and 2019, where the cash ratios were 0.66 and 0.92 respectively, the company seems to have enhanced its liquidity position significantly, particularly compared to 2021. This might indicate better cash management practices or lower short-term liabilities.
However, the 2023 ratio is lower than in 2020 when it stood at 1.03, indicating a decreased ability to cover short-term obligations solely with cash and cash equivalents. This drop could be due to a decrease in cash reserves relative to short-term liabilities or an increase in short-term obligations.
Overall, the cash ratio analysis suggests that CSG Systems International Inc. may have focused on improving its liquidity position in 2023 compared to the previous year, although it still observed a decline from the high ratio seen in 2020. Further monitoring of the company's cash management practices and liquidity position will be important to assess its financial health and ability to meet short-term obligations effectively.
Peer comparison
Dec 31, 2023