CSG Systems International Inc (CSGS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.31 | 5.28 | 3.80 | 3.18 | 3.15 |
CSG Systems International Inc has maintained a consistently low level of debt in relation to its assets, capital, and equity over the period from December 31, 2020, to December 31, 2024, with debt-to-assets, debt-to-capital, and debt-to-equity ratios all at 0.00. This indicates that the company has financed its operations primarily through equity rather than debt.
However, the financial leverage ratio has increased significantly over the same period, starting at 3.15 on December 31, 2020, and rising to 5.31 on December 31, 2024. This suggests that while the company has minimal debt in relation to assets, capital, and equity, its reliance on financial leverage has increased over time, potentially indicating a higher level of financial risk or operational complexity in the later years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.68 | 3.97 | 4.70 | 6.74 | 5.71 |
Interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income. Looking at the data provided for CSG Systems International Inc, we observe that the interest coverage ratio has fluctuated over the years.
As of December 31, 2020, the interest coverage ratio was 5.71, suggesting that the company generated operating income 5.71 times greater than its interest expenses, indicating a relatively healthy financial position.
By December 31, 2021, the interest coverage ratio improved to 6.74, indicating a further strengthening of the company's ability to cover its interest payments.
However, by December 31, 2022, the interest coverage ratio decreased to 4.70, which might suggest a slight decline in the company's ability to cover its interest expenses adequately.
The trend continued into December 31, 2023, with the interest coverage ratio decreasing to 3.97, indicating a further decrease in the company's ability to cover its interest payments.
Finally, by December 31, 2024, the interest coverage ratio slightly improved to 4.68, but it remains below the levels seen in the earlier years.
Overall, the fluctuation in the interest coverage ratio over the years suggests that CSG Systems International Inc's ability to cover its interest obligations has varied, and it would be important to monitor this ratio closely for future financial performance assessments.