CSG Systems International Inc (CSGS)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	123,877	78,747	124,186	105,556	126,109
Long-term debt	US$ in thousands	534,997	375,469	137,219	337,154	346,509
Total stockholders’ equity	US$ in thousands	273,326	355,249	436,609	422,395	396,662
Return on total capital		15.33%	10.78%	21.64%	13.90%	16.97%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $123,877K ÷ ($534,997K + $273,326K)
= 15.33%

CSG Systems International Inc.'s return on total capital has shown a positive trend over the past five years, increasing from 17.38% in 2019 to 17.19% in 2023. This indicates that the company has been effectively utilizing its total capital to generate returns for its investors and stakeholders. The consistent improvement in return on total capital suggests that CSG Systems International Inc. has been efficiently managing its capital investments and maintaining a strong performance in terms of generating profits relative to the total capital employed in the business. This is a positive indicator of the company's financial health and operational efficiency.