CSG Systems International Inc (CSGS)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	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
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	615,209	560,836	527,209	695,102	420,015
Quick ratio		0.26	0.66	0.29	0.34	0.57

December 31, 2024 calculation

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

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Looking at the data provided for CSG Systems International Inc, we observe fluctuations in the quick ratio over the years.

In December 2020, the quick ratio was 0.57, indicating that the company had $0.57 of liquid assets available to cover each dollar of current liabilities. However, by December 2021, the quick ratio decreased to 0.34, suggesting a potential strain on the company's ability to meet its short-term obligations.

Subsequently, in December 2022, the quick ratio further declined to 0.29, which may raise concerns about the company's liquidity position.

However, there appears to be a positive turn in December 2023, with the quick ratio improving to 0.66, signaling a stronger ability to cover current liabilities with liquid assets.

Unfortunately, by December 2024, the quick ratio fell again to 0.26, potentially indicating a decreased ability to meet short-term obligations with available liquid resources.

In conclusion, the trend in CSG Systems International Inc's quick ratio demonstrates fluctuations in liquidity over the years, with periods of both strength and potential vulnerability in meeting short-term obligations. Monitoring this ratio closely can provide insights into the company's financial health and ability to manage liquidity effectively.