CSG Systems International Inc (CSGS)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.37 | 0.28 | 0.10 | 0.25 | 0.27 |
| Debt-to-capital ratio | 0.66 | 0.51 | 0.24 | 0.44 | 0.47 |
| Debt-to-equity ratio | 1.96 | 1.06 | 0.31 | 0.80 | 0.87 |
| Financial leverage ratio | 5.28 | 3.80 | 3.18 | 3.15 | 3.23 |
Based on the provided solvency ratios for CSG Systems International Inc., we can observe the following trends:
1. Debt-to-assets ratio: This ratio has been increasing over the years, indicating that the company is relying more on debt to finance its assets. In 2023, the ratio stands at 0.38, showing that 38% of the company's assets are funded by debt.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also been on the rise. In 2023, the ratio is at 0.66, which means that 66% of the company's capital structure is financed by debt.
3. Debt-to-equity ratio: The debt-to-equity ratio reflects a significant increase from 2019 to 2023, reaching 1.98 in 2023. This suggests that the company has been increasingly relying on debt compared to equity to fund its operations and growth.
4. Financial leverage ratio: The financial leverage ratio, which measures the proportion of debt in the company's capital structure relative to equity, has continued to increase over the years. In 2023, the ratio stands at 5.28, indicating a substantial amount of financial leverage used by the company in its operations.
In summary, the solvency ratios of CSG Systems International Inc. demonstrate a consistent trend of increasing reliance on debt financing across all the metrics. This raises concerns about the company's overall financial risk and ability to meet its debt obligations in the long run. It is essential for investors and stakeholders to closely monitor these ratios and assess the company's financial health and stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 72.87 | 78.75 | 25.24 | 21.62 | 27.30 |
The interest coverage ratio for CSG Systems International Inc. has shown a decreasing trend over the past five years. The ratio declined from 7.38 in 2019 to 4.50 in 2023. This indicates that the company's ability to meet its interest obligations from its operating profits has weakened over time. Despite the downward trend, the interest coverage ratio remained above 1 in each year, suggesting that the company generated sufficient operating income to cover its interest expenses. However, the decreasing trend highlights the importance of monitoring the company's ability to generate sustainable earnings to meet its interest payments in the future.