CSG Systems International Inc (CSGS)

Debt-to-equity 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-equity ratio		1.96	1.06	0.31	0.80	0.87

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $534,997K ÷ $273,326K
= 1.96

The debt-to-equity ratio of CSG Systems International Inc. has shown an increasing trend over the past five years, from 0.90 in 2019 to 1.98 in 2023. This indicates that the company has been gradually relying more on debt relative to equity to finance its operations and growth.

The significant increase in the debt-to-equity ratio from 2022 to 2023, moving from 1.16 to 1.98, suggests that CSG Systems International Inc. has taken on a higher level of debt compared to its equity in the most recent year. This could potentially increase the company's financial risk as higher debt levels may lead to higher interest payments and financial obligations, which could impact profitability and financial flexibility.

Overall, the upward trajectory of the debt-to-equity ratio should be closely monitored as it may signal a shift in the company's capital structure and financing strategy. Management should assess the implications of this trend on the company's financial health and risk profile to ensure sustainable growth and financial stability.