CSG Systems International Inc (CSGS)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	534,997	375,469	137,219	337,154	346,509
Total stockholders’ equity	US$ in thousands	273,326	355,249	436,609	422,395	396,662
Debt-to-capital ratio		0.66	0.51	0.24	0.44	0.47

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $534,997K ÷ ($534,997K + $273,326K)
= 0.66

The debt-to-capital ratio of CSG Systems International Inc. has shown an increasing trend over the past five years, starting at 0.47 in 2019 and reaching 0.66 in 2023. This indicates that the company is relying more on debt to finance its operations and investments relative to its total capital structure.

The increasing trend in the debt-to-capital ratio suggests that CSG Systems International Inc. may be taking on more debt to fund its growth or other strategic initiatives. While a higher debt-to-capital ratio can provide the company with access to additional funds, it also increases the company's financial risk, as higher levels of debt can lead to higher interest payments and potential liquidity challenges.

Investors and creditors may view a rising debt-to-capital ratio as a signal of increased financial leverage and potential concerns about the company's ability to meet its debt obligations in the long term. It is important for CSG Systems International Inc. to carefully manage its debt levels and ensure that it maintains a healthy balance between debt and equity to support sustainable growth and financial stability.