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.