CSG Systems International Inc (CSGS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 26.09% | 23.48% | 27.28% | 24.51% | 28.08% |
| Operating profit margin | 10.59% | 7.22% | 11.89% | 10.66% | 12.65% |
| Pretax margin | 7.89% | 5.57% | 9.67% | 8.62% | 10.61% |
| Net profit margin | 5.66% | 4.04% | 6.93% | 5.93% | 8.30% |
CSG Systems International Inc. has shown a consistent trend in its profitability ratios over the past five years. The gross profit margin has ranged between 45.93% and 48.14%, indicating relatively stable performance in generating revenue after accounting for the cost of goods sold. The operating profit margin has ranged from 11.19% to 13.14%, showing a consistent level of operating efficiency in managing operating expenses.
The pretax margin has exhibited some variability, with values ranging from 5.58% to 10.61%. This metric reflects the company's ability to generate profits before accounting for taxes, and the fluctuations may be due to changes in financial performance or tax obligations.
The net profit margin has shown a declining trend over the five-year period, ranging from 4.04% to 8.30%. This metric represents the company's bottom-line profitability after all expenses have been deducted, including taxes. The decreasing trend may indicate challenges in controlling costs or generating higher revenues relative to expenses.
Overall, CSG Systems International Inc. has maintained relatively stable gross and operating profit margins, but has experienced fluctuations in pretax and net profit margins. It may be worth further investigation to understand the factors driving these changes and assess the company's overall profitability and efficiency.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.58% | 5.84% | 8.95% | 7.92% | 9.83% |
| Return on assets (ROA) | 4.59% | 3.27% | 5.21% | 4.41% | 6.45% |
| Return on total capital | 15.33% | 10.78% | 21.64% | 13.90% | 16.97% |
| Return on equity (ROE) | 24.24% | 12.40% | 16.57% | 13.90% | 20.87% |
CSG Systems International Inc. has shown consistent profitability over the past five years. The Operating return on assets (Operating ROA) has ranged between 8.32% and 10.21%, indicating the company's ability to generate operating income relative to its total assets. The upward trend in Operating ROA from 2020 to 2023 suggests improved operational efficiency.
The Return on assets (ROA) has ranged between 3.27% and 6.45% over the same period, with a notable increase in 2021 followed by a slight decrease in subsequent years. This ratio reflects the company's overall ability to generate profits from its assets.
The Return on total capital has shown a consistent upward trend, varying between 14.33% and 17.38%, indicating efficient use of both debt and equity capital to generate returns. The increase in this ratio over time signifies improved profitability derived from the total capital employed by the company.
The Return on equity (ROE) has fluctuated between 12.40% and 24.24% over the past five years, with a significant jump in 2023. This ratio reflects the company's ability to generate profits from shareholders' equity and indicates the overall financial performance as perceived by equity investors.
In conclusion, CSG Systems International Inc. has demonstrated steady profitability, as evidenced by its strong operating performance, efficient use of assets and capital, and ability to generate returns for its shareholders.