CSG Systems International Inc (CSGS)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	161,789	186,264	150,365	205,635	188,699
Short-term investments	US$ in thousands	—	186,264	71	28,037	51,598
Total current liabilities	US$ in thousands	615,209	560,836	527,209	695,102	420,015
Cash ratio		0.26	0.66	0.29	0.34	0.57

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($161,789K + $—K) ÷ $615,209K
= 0.26

The cash ratio of CSG Systems International Inc has experienced fluctuations over the past five years. As of December 31, 2020, the cash ratio was 0.57, indicating that the company had $0.57 in cash for every $1 of current liabilities. By December 31, 2021, the cash ratio decreased to 0.34, suggesting a lower level of cash available to cover current liabilities.

Further decline was observed by December 31, 2022, with the cash ratio dropping to 0.29. This decrease may raise concerns about the company's liquidity and ability to meet its short-term obligations using available cash reserves. However, there was a notable improvement by December 31, 2023, as the cash ratio increased to 0.66, signaling an enhanced liquidity position.

Unfortunately, this improvement was short-lived, as by December 31, 2024, the cash ratio declined sharply to 0.26. This significant decrease implies a potential strain on the company's ability to cover its short-term liabilities solely with cash on hand. Overall, the trend in CSG Systems International Inc's cash ratio underscores the importance of monitoring liquidity levels and managing cash resources effectively to ensure financial stability and meet short-term obligations.