CSG Systems International Inc (CSGS)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	123,877	78,747	124,186	105,556	126,109
Total assets	US$ in thousands	1,443,050	1,348,550	1,387,150	1,332,000	1,283,030
Operating ROA		8.58%	5.84%	8.95%	7.92%	9.83%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $123,877K ÷ $1,443,050K
= 8.58%

The operating return on assets (ROA) for CSG Systems International Inc. has shown a fluctuating trend over the past five years.

In 2023, the operating ROA increased to 9.72% from 9.27% in 2022, indicating improved efficiency in generating profits from its operating assets. This uptick suggests that the company was able to generate approximately $0.0972 in operating profit for every dollar of assets employed in its operations during the year.

Comparing the 2023 operating ROA with the five-year trend, it appears that the company's performance was relatively strong. However, it is essential to monitor the trend closely in the upcoming years to assess the company's ability to sustain or improve this level of operational efficiency.

While the 2023 operating ROA was lower than the peak of 10.21% in 2019, it remained higher than the 8.32% recorded in 2020. This suggests a recovery in the company's ability to generate profits from its operating assets following a temporary dip.

Overall, the improvement in the operating ROA in 2023 reflects positively on CSG Systems International Inc.'s operational performance and efficiency in utilizing its assets to drive profitability.