CSG Systems International Inc (CSGS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.68% | 47.40% | 48.14% | 48.09% | 45.93% |
| Operating profit margin | 10.97% | 10.59% | 12.02% | 11.87% | 10.66% |
| Pretax margin | 9.38% | 7.90% | 5.58% | 9.65% | 8.62% |
| Net profit margin | 7.25% | 5.67% | 4.04% | 6.91% | 5.93% |
CSG Systems International Inc has shown a consistent improvement in its gross profit margin over the years, with an increase from 45.93% in 2020 to 48.68% in 2024. This indicates the company's ability to effectively manage its production costs and generate profit from its core operations.
In terms of operating profit margin, CSG Systems International Inc also demonstrated steady growth, albeit with fluctuations, reaching 10.97% in 2024 from 10.66% in 2020. This metric reflects the company's efficiency in controlling operating expenses and generating profits before interest and taxes.
However, there was some volatility in the pretax margin, which declined significantly from 9.65% in 2021 to 5.58% in 2022 before recovering to 9.38% in 2024. This suggests that the company faced challenges in managing its pre-tax earnings relative to its total revenue during certain periods.
On the other hand, the net profit margin of CSG Systems International Inc has shown a generally positive trend, increasing from 5.93% in 2020 to 7.25% in 2024. This metric reflects the company's ability to convert revenue into net income, indicating its overall profitability and efficiency in managing costs.
In conclusion, while CSG Systems International Inc has demonstrated improvements in its profitability margins over the years, it also faced challenges in maintaining consistent pre-tax earnings. The company's ability to sustain and further enhance its profitability will be crucial for its long-term financial health and growth.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.75% | 8.58% | 9.71% | 8.95% | 7.92% |
| Return on assets (ROA) | 5.79% | 4.59% | 3.27% | 5.21% | 4.41% |
| Return on total capital | 50.52% | 45.32% | 21.73% | 27.15% | 24.99% |
| Return on equity (ROE) | 30.74% | 24.24% | 12.40% | 16.57% | 13.90% |
CSG Systems International Inc's profitability ratios have shown a consistent and positive trend over the past five years.
Operating return on assets (Operating ROA) increased from 7.92% in December 2020 to 8.75% in December 2024, indicating the company's ability to generate profits from its core operations.
Return on assets (ROA) also saw an upward trajectory, rising from 4.41% in December 2020 to 5.79% in December 2024, reflecting efficient asset utilization to generate earnings.
Return on total capital demonstrated significant growth, surging from 24.99% in December 2020 to 50.52% in December 2024, showcasing the company's effective use of both equity and debt to generate returns.
Return on equity (ROE) displayed a similar positive trend, increasing from 13.90% in December 2020 to 30.74% in December 2024, indicating higher returns for shareholders' equity investment.
Overall, the improving profitability ratios suggest that CSG Systems International Inc has been successful in increasing profits relative to the assets, capital, and equity employed, signaling sound financial performance and management efficiency.