CSG Systems International Inc (CSGS)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.46 | 1.58 | 1.59 | 1.74 | 1.54 | 1.65 | 1.68 | 1.66 | 1.45 | 1.55 | 1.04 | 1.06 | 1.08 | 1.09 | 1.09 | 1.09 | 1.66 | 1.78 | 1.73 | 1.74 |
| Quick ratio | 0.26 | 0.24 | 0.23 | 0.29 | 0.66 | 0.64 | 0.68 | 0.76 | 0.29 | 0.33 | 0.20 | 0.29 | 0.34 | 0.34 | 0.34 | 0.35 | 0.57 | 0.59 | 0.46 | 0.38 |
| Cash ratio | 0.26 | 0.24 | 0.23 | 0.29 | 0.66 | 0.64 | 0.68 | 0.76 | 0.29 | 0.33 | 0.20 | 0.29 | 0.34 | 0.34 | 0.34 | 0.35 | 0.57 | 0.59 | 0.46 | 0.38 |
Based on the provided data, the liquidity ratios of CSG Systems International Inc can be analyzed as follows:
1. Current Ratio: The current ratio measures the company's ability to meet its short-term obligations with its current assets. CSG Systems' current ratio has fluctuated over the years, ranging from a low of 1.04 in June 2022 to a high of 1.78 in September 2020. Generally, a current ratio above 1 indicates that the company has sufficient current assets to cover its current liabilities. CSG Systems' current ratio has mostly been above 1, which suggests that the company has a reasonable level of liquidity to settle its short-term obligations.
2. Quick Ratio: The quick ratio, also known as the acid-test ratio, is a more stringent measure of liquidity as it excludes inventory from current assets. CSG Systems' quick ratio has varied significantly, with values as low as 0.20 in June 2022 and as high as 0.76 in March 2023. A quick ratio below 1 may indicate potential difficulty in meeting short-term obligations without relying on the sale of inventory. CSG Systems generally has a quick ratio below 1, which suggests that the company may rely on inventory to meet its immediate liquidity needs.
3. Cash Ratio: The cash ratio is the most conservative liquidity ratio, focusing solely on the company's ability to cover its current liabilities with cash and cash equivalents. CSG Systems' cash ratio follows a similar pattern to the quick ratio, with values ranging from 0.20 to 0.76. A cash ratio below 1 implies that the company may need to utilize non-cash current assets to meet short-term obligations. CSG Systems' cash ratio being consistently below 1 indicates that the company may need to rely on non-cash assets to maintain liquidity.
In conclusion, while CSG Systems International Inc generally maintains a current ratio above 1, indicating a sufficient level of liquidity to cover short-term liabilities, its quick ratio and cash ratio consistently below 1 suggest a potential reliance on non-cash assets, such as inventory, to meet immediate liquidity needs.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
CSG Systems International Inc has consistently maintained a cash conversion cycle of 0.00 days over the past several quarters, including March 31, 2020, to December 31, 2024. This indicates that the company is efficiently managing its cash flow processes, from the initial investment in raw materials or inventory, through to the collection of accounts receivable. With a cash conversion cycle of 0.00 days, CSG Systems International Inc is able to quickly convert its investments in inventory and accounts receivable back into cash, which is a positive sign of financial health and effective working capital management.