CSG Systems International Inc (CSGS)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 142,741 | 123,877 | 77,213 | 118,536 | 105,564 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 282,569 | 273,326 | 355,249 | 436,609 | 422,395 |
| Return on total capital | 50.52% | 45.32% | 21.73% | 27.15% | 24.99% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $142,741K ÷ ($—K + $282,569K)
= 50.52%
CSG Systems International Inc's return on total capital has demonstrated a positive trend over the years, increasing from 24.99% as of December 31, 2020, to 50.52% as of December 31, 2024. This indicates that the company has been effectively utilizing its invested capital to generate profits. The significant improvement in the return on total capital signifies the company's ability to efficiently deploy its resources to create value for its shareholders. The consistent growth in this ratio reflects positively on CSG Systems International Inc's financial performance and management's effectiveness in generating returns from the total capital employed in the business.
Peer comparison
Dec 31, 2024