CSG Systems International Inc (CSGS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.54 | 1.65 | 1.68 | 1.66 | 1.45 | 1.55 | 1.04 | 1.06 | 1.08 | 1.09 | 1.09 | 1.09 | 1.64 | 1.78 | 1.73 | 1.74 | 1.60 | 1.70 | 1.71 | 1.72 |
| Quick ratio | 0.96 | 1.10 | 1.12 | 1.13 | 0.91 | 1.03 | 0.64 | 0.74 | 0.75 | 0.77 | 0.78 | 0.84 | 1.16 | 1.34 | 1.24 | 1.26 | 1.11 | 1.28 | 1.32 | 1.35 |
| Cash ratio | 0.33 | 0.32 | 0.34 | 0.38 | 0.29 | 0.33 | 0.20 | 0.29 | 0.34 | 0.34 | 0.34 | 0.35 | 0.55 | 0.59 | 0.46 | 0.38 | 0.44 | 0.48 | 0.39 | 0.44 |
CSG Systems International Inc.'s liquidity ratios have exhibited fluctuations over the observed periods.
The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has generally been above 1, indicating a healthy liquidity position. However, there was a noticeable improvement from Q4 2022 to Q2 2023, where the ratio increased from 1.45 to 1.68 before slightly declining in Q4 2023 to 1.54.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. This ratio has mirrored the trend of the current ratio, remaining consistently at or above 1, demonstrating the company's ability to meet short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has also generally shown improvement over the periods analyzed. Notably, the ratio increased from 0.59 in Q2 2022 to 0.90 in Q2 2023 before experiencing a slight dip in Q3 and Q4 2023.
Overall, CSG Systems International Inc. has maintained healthy liquidity levels as indicated by its current, quick, and cash ratios, with recent improvements suggesting a strengthening liquidity position. Investors and stakeholders may find these trends reassuring in terms of the company's ability to meet its short-term obligations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of CSG Systems International Inc. fluctuated over the past eight quarters, ranging from a low of 76.41 days in Q1 2022 to a high of 87.95 days in Q3 2023. Generally, the company takes approximately 80-85 days to convert its investments in inventory and accounts receivable into cash inflows from sales. A longer cash conversion cycle indicates that the company is taking longer to recover its investment in working capital, which could potentially impact liquidity and cash flow management. It is essential for CSG Systems International Inc. to closely monitor and manage its cash conversion cycle to ensure efficient working capital management and sustained financial health.