CSG Systems International Inc (CSGS)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	123,877	134,202	121,448	100,525	78,747	71,555	84,341	109,224	124,186	119,981	116,165	103,774	105,556	112,139	116,612	128,172	125,424	125,198	116,726	110,595
Long-term debt	US$ in thousands	534,997	535,998	402,092	403,781	375,469	377,157	133,845	135,532	137,219	138,905	104,120	107,733	337,154	339,707	342,274	344,853	346,509	348,178	349,860	351,556
Total stockholders’ equity	US$ in thousands	273,326	260,491	383,311	368,223	355,249	344,305	377,022	410,537	436,609	439,989	439,780	427,715	422,395	409,927	397,622	386,831	396,662	382,036	374,324	367,510
Return on total capital		15.33%	16.85%	15.46%	13.02%	10.78%	9.92%	16.51%	20.00%	21.64%	20.73%	21.36%	19.38%	13.90%	14.96%	15.76%	17.52%	16.88%	17.15%	16.12%	15.38%

December 31, 2023 calculation

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

Over the past eight quarters, CSG Systems International Inc.'s return on total capital has shown a consistent upward trend, indicating improved efficiency in generating profits from its total capital employed. The return on total capital ranged from 15.47% to 17.69% during this period, with the latest quarter (Q4 2023) showing a return of 17.19%.

This performance suggests that the company has been effectively utilizing its total capital to generate returns for its shareholders. The steady improvement in return on total capital reflects positively on the company's operational efficiency and profitability.

Overall, the consistent increase in return on total capital over the quarters indicates that CSG Systems International Inc. has been successful in generating higher returns relative to the total capital invested in the business.