CSG Systems International Inc (CSGS)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 86,852 | 66,246 | 44,060 | 72,331 | 58,711 |
| Total stockholders’ equity | US$ in thousands | 282,569 | 273,326 | 355,249 | 436,609 | 422,395 |
| ROE | 30.74% | 24.24% | 12.40% | 16.57% | 13.90% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $86,852K ÷ $282,569K
= 30.74%
Starting with an ROE of 13.90% as of December 31, 2020, CSG Systems International Inc demonstrates a respectable level of profitability relative to shareholders' equity. Over the subsequent years, the company's ROE experienced fluctuations, reaching 16.57% by December 31, 2021, indicating an improvement in generating profits from its equity base. However, by December 31, 2022, the ROE decreased to 12.40%, which may point toward challenges in efficiently utilizing shareholder investments to generate returns.
The trend shifted significantly in the following years, with the ROE jumping to 24.24% by December 31, 2023, suggesting a sharp increase in profitability and potentially more effective management of equity. Notably, by December 31, 2024, the ROE surged to 30.74%, showcasing a remarkable performance in generating returns for shareholders.
Overall, the fluctuating ROE of CSG Systems International Inc indicates varying levels of efficiency in utilizing equity to generate profits, with notable improvements in later years. These shifts warrant further exploration to understand the underlying factors influencing the company's profitability and equity utilization.
Peer comparison
Dec 31, 2024